Liceo de Cagayan University

Senior High School Department

RNP Boulevard, Kauswagan, Cagayan de Oro City

STUDENT ACTIVITY SHEET NO. 6

(Individual Task)

Learning Competencies:

● Apply business principles, tools, and techniques in participating in various types of industries in the
locality

Instructions: Conduct an industry analysis using the Porter’s Five Forces model using a given situation. Using
the following situation, answer the questions that follow:

Jessica Pearson is growing tired of her career in the BPO industry. She is thinking of resigning from her
current job and pursuing a farming business.

1. Conduct an industry analysis using Porter’s Five Forces model by identifying at least one example for each of
the external forces. Write these down in spaces provided in each force.

Porter’s Five Forces Example of the External Forces

Competition in the Industry  If Jessica Pearson wants to start a farming business similar
to poultry, Vista del Rio Farm is one of her competitors. The
farm is in Cagayan de Oro and is a well-known and active
egg and poultry industry. Vista del Rio Farms sells quality
day-old chicks as well as white eggs and poultry meat under
the Vista Fresh egg and chicken brand.

https://layinghens.hendrix-genetics.com/en/distributors/vista-del-rio-farm-inc/

Potential for new entrants into  There are numerous possibilities if Jessica Pearson pursues
the industry the farming business, particularly the egg and poultry
business. Jessica will struggle to keep up with all of the
active and well-known poultry farms in the country. Because
she is new, she should take advantage of this and look for
investors and other alternatives to help her farming business
grow. The introduction of a new competitor into a market
tends to lower market prices. When more companies
compete for the same market share, customers prefer those
with lower prices, and the overall price level falls. Because
she is new to the industry, this could be advantageous.

Tel. No. (088) 858-4086, 858-4093 to 95, (8822) 72-7044, 71-4253 PABX local (President) – 112 & 126, (Registrar) – 109
Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: inquiries@liceo.edu.ph [website: www.liceo.edu.ph)
 Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City

Power of Suppliers  In Jessica's case, she should do some research on how the
industry works because suppliers have the power to
influence prices and resource availability. Suppliers are most
powerful when businesses rely on them and are unable to
switch to other suppliers due to higher costs or a lack of
alternative sources. Finding a low-cost supplier with a high-
quality product can be difficult, but if Jessica is good at
negotiating, she should use her skills and look for suppliers
who will be around for a long time. Jessica should look for a
reliable supplier who can also assist her in expanding her
business.

Power of Buyers  Jessica will face tough competition in the agricultural

industry, particularly in poultry farming. There are many
organic chicken farmers out there, which consumers may
already be aware of. Jessica should have a distinct business
strategy to attract customers. She must gain the trust of the
consumers in order for them to try her product. Buyers wield
considerable power over Jessica because they are the ones
who will consume the goods, and Jessica's business is new.
Because she has many competitors ahead of her, it will be
difficult for her to gain their trust. However, because Jessica
is new to the industry, she should capitalize on this and
devise an effective strategy to gain the buyers' trust.

Threat of Substitute Products  There are numerous substitute products that could pose a
threat, particularly in the poultry industry. Other meats could
be used in place of organic poultry. Other birds, such as
quail, have their own allure.

Tel. No. (088) 858-4086, 858-4093 to 95, (8822) 72-7044, 71-4253 PABX local (President) – 112 & 126, (Registrar) – 109
Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: inquiries@liceo.edu.ph [website: www.liceo.edu.ph)
 Liceo de Cagayan University
Senior High School Department
RNP Boulevard, Kauswagan, Cagayan de Oro City

2. Based on the examples you listed, make a recommendation to Jessica Pearson on whether or not she should
pursue business in the farming industry.

Jessica Pearson should conduct preliminary research before venturing into the farming business. There are
many factors to consider in poultry farming, such as capital, land, and so on. She should also consider the
drawbacks of starting a farm business. So, if I were Jessica, I would probably start by investing in research
before pursuing the actual business, so that I would have some knowledge about it and would be better able
to deal with the possibilities that would arise.

Tel. No. (088) 858-4086, 858-4093 to 95, (8822) 72-7044, 71-4253 PABX local (President) – 112 & 126, (Registrar) – 109
Tel. Fax No. (01163) (088) 858-3123 (8822) 72-7044, 71-4253 local 111 [email: inquiries@liceo.edu.ph [website: www.liceo.edu.ph)