This week Discussion Video is an interview with Michael E. Porter, Harvard Unive

Question

This week Discussion Video is an interview with Michael E. Porter, Harvard University Professor. Considering the Porter's five competitive forces framework, please answer the following discussion question.

Please briefly (25-50 words) describe (in your own words) the “competitive force” associated with the first letter of your last name (listed below) mine is K-R

Please consider an organization in the field of “Oil and Gas” in which you worked in the past (or are currently working or with which you are familiar), then please discuss and provide (50-100 words) an example of the “competitive force” associated with the first letter of your last name (listed below) for that organization.

A-D: Buyer Bargaining Power

E-J: Threat of Substitute Products or Threat of New Entrants

K-R: Supplier Bargaining Power

S-Z: Rivalry among competing sellers

After posting your comment on the discussion board, please make sure to reply to another classmate’s post on a “competitive force” different from the one assigned to you. Please avoid replies such as “I agree” and provide insightful contributions by elaborating on your replies to the other student's post.

Explanation / Answer

The forces, which determine the course of business, taken by a company, have been compiled as the Porter’s 5 Forces.

Porter’s 5 Forces

K-R : Supplier Bargaining Power

This force highlights the power of the supplier in the business and environmental conditions of the company. It can be referred to as the extent of pressure levied by the suppliers on business. The suppliers can levy pressure on business by controlling price and quality of their products or by keeping a check on the product availability, required by business.

Supplier Bargaining Power on GE Oil and Gas – low

There are various suppliers available in the oil and gas industry. Also the supply chain of GE oil and gas deals with an array of suppliers. There is no dependency on any one supplier. This decreases the overall bargaining power of suppliers as GE has an array of options to choose from

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