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1 Is there a high threat of entry?

Michael Porter proposes a model of competitive strategy to demonstrate an industrys position in a


complicated strategic environment. Porters five forces is a model that provides one way to present the
current position of an industry. The five forces presented the supplier power, the buyer power, the entry
barriers to entry, the threat of substitution and the degree of rivalry. (Yunna and Yisheng, 2014). Laundry
business can be fairly easy to start, even if you don't have experience in the industry. The threat of new
entrants analyses how it is for a fresh entrant or entrants to move into the competitive environment a
company operates within. There a low chance of this happening if there are at least some form of
barriers to entry into the industry such as strict regulations, need for specific knowledge or huge
investment requirements. In turn, there a low chance of new companies entering the market if there are
good profit potential and fewer obstacles in the way to achieving this profit (Cleverism, 2016). This
business is very competitive, so we require to differentiate our business from the rivals to be successful.
(Martin, 2016). We can save cost because formal experience not needed.

2 Do Buyers have high bargaining Power?


The bargaining power of buyers is low because there are not many laundry in Maluri to compete with,
therefore buyers' power to bargain are low. Customers would accept the prices that are offered, the
service packages and specials. When a powerful group of buyers is present in the market, it can
extremely impact a companys product and selling decisions. The strongest power that buyers can use it
to lower prices, which in turn impacts the profit. Buyers can also demand higher quality of services or
products, and strengthen the competitiveness by forcing dissimilar companies into price wars. All of
these factors end up decreasing the appeal of the industry by lowering its profitability (MaRS, 2016).

3 Reference
Cleverism. (2016). Threat of New Entrants | Porters Five Forces Model. [Online] Available at:
https://www.cleverism.com/threat-of-new-entrants-porters-five-forces-model/[Accessed 29 Oct. 2016].
Cleverism. (2016). Bargaining Power of Buyers | Porters Five Forces Model. [Online] Available at:
https://www.cleverism.com/bargaining-power-of-buyers-porters-five-forces-model/ [Accessed 30 Oct.
2016]. [Bibliography]
Dobbs, M. (2012). Porter's Five Forces in Practice: Templates for Firm and Case Analysis. Eastern
Illinois University, [online] 10(1), pp. `1-13. Available at:
http://eds.a.ebscohost.com/eds/pdfviewer/pdfviewer?sid=a213c93f-9231-4415-a9252a1f56473582%40sessionmgr4006&vid=0&hid=4113 [Accessed 29 Oct. 2016]. [Bibliography]
Martin, M. (2016). How to Open a Laundry Business. [Online] Smallbusiness.chron.com. Available at:
http://smallbusiness.chron.com/open-laundry-business-2468.html [Accessed 30 Oct. 2016].
MaRS. (2016). Buyers Bargaining Power | Porters Five Forces Analysis. [Online] Available at:
https://www.marsdd.com/mars-library/bargaining-power-of-buyers-porters-five-forces-analysis/
[Accessed 30 Oct. 2016].
Yunna, W. and Yisheng, Y. (2014). The competition situation analysis of shale gas industry in China:
Applying Porters five forces and scenario model. Renewable and Sustainable Energy Reviews, [online]
40, pp.798-805. Available at: http://ac.els-cdn.com/S1364032114006911/1-s2.0-S1364032114006911main.pdf?_tid=f8b4e814-9dc5-11e6-9f9600000aab0f26&acdnat=1477738608_f215ffebcb88fc75b9e9edb6a2e9116f [Accessed 20 Oct. 2016].