Essay: Porter’s 5 Forces Frame work

Essay: Porter’s 5 Forces Frame work
16/06/2011 Comments Off on Essay: Porter’s 5 Forces Frame work Academic Papers on Business Studies,Sample Academic Papers admin

Sample Essay

1) Bargaining Power of Customers

It is common knowledge that the Italian customers for clothing products are highly brand conscious and prefer better and more elite brands. They are more likely to prefer the more exotic brand labels such as Gucci and Armani to M&S. The Italian customers are more conscious about brands when it comes to clothing. This is perhaps one of the major reasons that to date there is no M&S outlet operating in Italy (Owen, 2001). M&S will have to either build a bigger and more powerful brand identity or go down stream and focus more on the lower income segments.

The per capita income for Italians for the year 2008 is around $ 31,000 which means that even lower income segments will have the ability to afford M&S labels (CIA, 2009).

Similarly for household items and also for gift products such as cards and flowers, the number of buyers is substantial. This can be seen by looking at the per capita income which suggests that most Italian customers will be able to afford house ware items.

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