A Kraft(y) Porter Five Analysis

Introduction Analyzing an organization using a specific model is a panacea drug to make a decision successful, or a panacea to analyze the company's future growth profitability. A common tool for doing this type of analysis is Michael Porter's five powers. There are two different correlation models in the research market. One way of analysis is the "structure - behavior - performance" paradigm, and the other is Porter 's five powers. Porter's five powers and the "structure - behavior - performance" paradigm overlap in many ways.

Developed by Michael Porter, Porter Five Analysis is a tool used by organizations to determine the structure and competitiveness of the industry (Porter, 2008). It includes five different forces that shape the industry; the threat of new entrants, the threat of alternative products, the bargaining power of buyers, the bargaining power of suppliers, and the competition between existing competitors (Porter). The ability to analyze and understand trends and threats within the industry is important for "effective strategic planning" that helps the organization to succeed. The following is an analysis of Kraft Foods using the Porter Five analysis model. Buyer Power

Figure 1 was designed by Michael Porter to define industry analysis. King's survey (written by Porter, 2008) states that Porter's five strengths include the competitors in the industry, the threat from new entrants, the bargaining power of customers, the threat to alternative plans, and the supplier's bargaining power It is said to be included. Competition among competitors is the most powerful of the five major competitiveness. In order to gain customer share and increase company profits and profits, companies have to compete with each other endlessly in the same industry. If a company pursues a strategy that has a competitive advantage over the strategy the competitor is pursuing, the competition will become even more intense. (2008 Porter)

There are many ways to analyze the competitive advantage of an organization's economy. The most common and available tool in operational environment analysis is Porter's five power analysis. It was developed by Michael E. Porter of Harvard Business School in 1979. Porter's analysis by five powers is a framework for industry structure analysis and business strategy formulation. According to Porter (1980), these five powers help the company understand the microenvironment of the affected industry by providing services to customers and maximizing profits. As shown in Figure 1, this model identifies five elements within the industry, such as the intensity of competition, the threat of new entrants, the bargaining power of buyers, alternative threats, supplier bargaining power. It uses the concept of drawing out five powers to determine the severity of competition and possible changes between industry competitors.