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Forest Timber & 5 Forces
Transcript of Forest Timber & 5 Forces
2. 5 Forces (Forest Timber Company)
-Bargain power of SUPPLIER AND BUYER
-Substitute, New Entrants, Rivalry
3. 5 Forces (Bromyard Kitchens)
4. Conclusion - Strong powers in bargain to the suppliers
- Offer preferential price, attract customers through providing required product
- Barriers of entry are complicated
- Potential profit in the industry.
- Advance technology
-more information in the market environment
-use proper strategy to deal with customers Introduction Value Chain Forests Timbers Advantages: + Diversified materials
+ High Quality materials
+ Attractive price Bromyard Three rings Quality of materials Operation Intangible Value of Quality Good materials Value of Operation Value of Services + Delivery
+ After sale services
+ Warranty = value we add kinds of wood: + American Cherry
+ Black Walnut any shape or size high quality lumber + veneer from high quality timber adds addition value + that are unique to customer's needs + Cutting
+ Packing Quality Bargain Power of Suppliers -Deforestation (Limited Wood Resource)
-Multiple Suppliers (Asia, Europe, North America)
-Solution: Contract & Technology Bargain Power of buyers -Price increase
-End Buyers' power become Weak * New entrants - high investment cost
- wood resource is limited
- loyal customers will shut down
the ability of new entrants. * Substitutes -plastic, steel,..
-=> low cost of peoduction and operation, fire resistant * Rivalry -market share
-high switching cost
-Product differentiation See 5 Forces in Bromyard Threat of New Entrant Bromyard Substitute Supplier Buyer Rivalry key points Using 3 Strategies to succeed 1. Overall cost leadership
- reduce production & operation cost
- product, service, intangible(brand name, reputation)
3. Market Focus
-specific segmentation Aoung, Aria, Lam, Lily, Mario Bibliography Adler, M. (2009) Porters five forces: The German Web Design industry
[Online]. University of Lincoln. Available at:
Cooper, G. (2013) 'You paid How Much for that?' Tactical Marketing
'Porter five forces analysis' Cited in Wikipedia, 2009. Available at:
http://en.wikipedia.org/wiki/Porter_five_forces_analysis Thank you for Listening Tutor: Graham Cooper (Market Share) (Forest Timber) (Quantity & Price willing to pay) (New Production Capacity) (Differentiation & Reduce Cost)