Industry Analysis

Hypower’s. Porter Five Forces Analysis:

The Porter Five Forces Analysis is a strategic management method for analysing industries
and understanding the fundamental levers of profitability. Us at Hypower Gen will utilise
Porter Five Forces to better understand how the five competing forces affect profitability and
design a plan for boosting the company's competitive edge and long-term profitability.

1. Threats of New Entrants  

Solution: 
 
a) Through the development and
improvement of our products and
services. New and improved products
not only attract new customers, but also
provide an incentive for existing
customers to purchase our products. 
b) By achieving economies of scale, the fixed cost per unit can be reduced.
c) Investing in research and development and building capacities. Newcomers are less
likely to enter a dynamic business where established companies like us at Hypower.
are constantly defining the norms. It drastically decreases the window of opportunity
for new businesses to make spectacular profits, discouraging new entrants into the
field.

2. Bargaining Power of Suppliers

 
Almost every company in the industry buy their raw material from numerous suppliers.
Suppliers in dominant position can decrease the margins of our business can earn in the
market. Powerful suppliers in Utilities sector use their negotiating power to extract
higher prices from the firms in industry.
 
Solution: 
 
a) By putting together an efficient supply chain with a variety of vendors.
b) Creating devoted suppliers who rely on the company for their existence.
 
3. Bargaining Power of Buyers

Solution:
 
 a) By establishing a large consumer base. This is beneficial in two ways. It will lower
customers' negotiating power and provide the company the chance to optimize its
sales and production processes.
b) By developing new and improved items at a faster rate. Customers frequently seek
discounts and special offers on well-known items, therefore if we at Hypower
continues to introduce better products and services, it may reduce buyers' negotiating
power. 

 
4. Threats of Substitute Products or Services
 
  Solution:

a) By focusing on service rather than just selling products.

b) By focusing on the customer's basic need rather than the product they are purchasing.
c) By raising the cost of switching for customers.

5. Rivalry among the Existing Competitors

Solution:

a) By creating a sustainable development.

b) By increasing its scale, it will be able to compete more effectively.
c) Rather than fighting for a small market, collaborate with competitors to expand the
market.