Reference no: EM133331936
Background
The basic question strategic management tries to answer is: How can we find a sustainable competitive advantage in the marketplace that is not only unique and valuable but also difficult for competitors to copy or substitute?
In order to formulate a competitive strategy, it's necessary to assess the segments of the external competitive environment that include competitors, customers or buyers, and suppliers, substitutes and new entrants. Porter's five forces model allows strategists to anticipate where the industry might be most vulnerable to competition. The model also helps decide where profits might be best made, or whether there is any chance of further dividing up the profit pie: how attractive is this industry?
To answer this question, it is very important to correctly define the industry even further. If we define the casino industry broadly to include any organization that allows people to wager money on events of chance, then we must include Native American casinos, waterborne casinos, and Internet gambling places as incumbents in the industry, along with casinos in Las Vegas and Atlantic City. However, if we define it narrowly to include traditional casinos in Las Vegas and Atlantic City, those that also provide enhanced entertainment, then most Native American casinos, etc. would be substitutes. Either way, the five forces model will capture the impact of all these gambling establishments.
Explain below how each of the above Porter Forces can contribute to making the rivalry intense: For example, if it is a high contributing force to competitor rivalry then circle the word high and vice versa.
1. Supplier Power: High, Medium or Low To Making
2. Substitute Threat: High, Medium or Low
3. Buyer's Power: High, Medium or Low
4. Threat of New Entrants High, Medium or Low.