IBS 2016-17 Sem2 Topic 2 - Exploring the Environment - Porter's Five Forces Model (S).docx

IBS 2016-17 Sem2 Topic 2 - Exploring the Environment - Porter's Five Forces Model (S).docx

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
International Business Strategy STUDENT’S COPY ____________________________________________________________________________________ _________ SINGAPORE POLYTECHNIC Prepared by: AH BUSINESS SCHOOL Moderated by: RT 2016/2017 SEM 2 Date: October 2016 Topic 2: EXPLORING THE ENVIRONMENT- PORTER’S FIVE FORCES TUTORIAL ASSIGNMENT TUTORIAL LEARNING OUTCOMES: (1) Describe Porter’s Five Forces of industry competitiveness. (2) Analyse an industry using Porter’s Five Forces model. (3) Identify potential reactions to strategic moves by competitors. SECTION A – SHARING SESSION 1. 2-3 students to share news article related to international business. 2. Review Porter’s Five Forces Framework SECTION B – CASE STUDY Five Forces in the Beauty Products Industry As a US$160 billion-a-year global industry, the beauty products industry encompasses makeup, skin and hair care, perfumes, cosmetic surgery, health clubs, and diet pills. Incumbents have remarkably long staying power in this industry. L’Oreal of France, today’s industry leaders, was founded in 1909. In 1911, both Nivea of Germany and Shiseido of Japan were established. In America, Elizabeth Arden and Max Factor were founded at about the same time. All these brands are still around, although not necessarily as independent companies. Recently, the industry has been growing at approximately 7% a year, more than twice the rate of the developed world’s GDP. Two groups around the world underpin such strong growth: (1) richer, aging baby-boomers in developed economies and (2) an increasingly more affluent middle class in emerging economies such as Brazil, China, India, Russia, and South Korea. Brazil, for example, has a larger army of Avon Ladies (900,000 strong) than its men and women in the army and navy combined! Three major changes affect this industry. First, a number of new entrants have emerged. Most luxury goods firms, such as Chanel, Dior, Ralph Lauren, and Yves St Laurent, now have beauty products. Two
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern