Friday, December 12, 2008


Porter’s competitive forces model ( PCFM) for two product.
(Imobile & Nokia )

Porter’s model identifies five major force that could either endanger or enchance a company’s position in a given industry.

Imobile is a new brand handphone product that a first born in Malaysia. Imobile is a new entry for the handphone market in Malaysia. Imobile have been competing with another handphone brand wih are nokia,Motorola,LG,Samsung,sony ericson,and another new brand.

Before Imobile enter new market,a study must be done in order to bring our product in the market. According to, PCFM they’re several forces that must be study before we market our product.

The first PCFM is the threat at entry of newpetitor. The threat of new competitor entry is high when it is easy to enter your market and low when significant barriers to entry exist.An entry barrier is a product or services feature that customers have learnd to expert from organizations in a certain industry.This feature must be offered by a competing organization for it to survice in the marketplace. For this products, Imobile have new competitor such nokia,Motorola,sony ericson,and other brand.

The second PCFM is the bargaining power of suppliers. Suppliers power is high when buyers have few choices from whom to buy and low when buyers have many choices. Therefore, organizations would rather have more potential suppliers to be able to better negotiate price, quality and delivery items.Imobile as a new Malaysia product only have a few suppliers from Malaysia and difficult to get items in this, the suppliers power for this product is high. For another product,they have many supplier to get their a result, they had low suppliers power.

The third porter’s competitive force model is the bargaining power of custemors (buyers).
Buyers power is high when buyers have many choices from whom to buy and low when buyers have few choices. For this product, buyers had few places from which to buy Imobile product. As a result,they had low buyers power. But for another brand handphone product, buyers have a multitude of choices to choose from, and as a result, buyers power greatlyincreased.

The fourth PCFM is the threat of substitute products or services.if there are many substitutes for an organization’s product or services,then the threat of substitutes is high. If there are few substitutes then the threat is low.Nowadays, new technologies create substitute products very rapidly.Imobile have many substitutes because before this there are many famous product for handphone,so imobile have high treat of substitutes.

The last porter’s competitive forces model is the rivalry among existing firms in the industry. The threat from rivalry is high when there is intense competition among many firms in an industry. The threat is low when the competition is among fewer firms and is no intense.Imobile had high threat from rivalry because it is intense competition among many firms in an industry.