According to Grundy 2006 the porters five forces are used to determine

According to grundy 2006 the porters five forces are

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According to Grundy (2006), the porter’s five forces are used to determine completion, company’s attractiveness in the industry and it’s potential. They include threats by new entrants into the markets which may result to losses. The department adopts sophisticated technology and strong brand loyalty. The bargaining power of suppliers and buyers also fall in this analysis. The department wants cheaper imports to manufacture their products forcing suppliers to lower their prices. On the other hand, customers check competitor prices to secure deals from key manufacturers and decide on the products to buy. By adopting new technologies, the company attracts many customers .Lastly, substitute threats and the degree of rivalry. Products of short life cycle and high costs calls for research and development while the degree of rivalry calls for competition with equally balanced firms such as Philips. PEST (political, Economic, Social and Technological) analysis shows market growth and gives directions for various organizations as stated by Recklies (2006).Political analysis call for
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TECHNOLOGY 5 tariff reductions and policies regarding legality imports and exports while economic analysis looks at Sony products prices. Social analysis are determined and guided by customer preferences that are mostly similar. Lastly, technological advances that requires competition and innovative products. According to Mintzberg (2003), SGA analysis determine various competitive positions of the company and also illustrates the intensity of rivalry between groups and companies. Companies cannot operate without Information Technology. There are advanced threats in the department and companies like Sony cannot compromise on but put up tight measures to address them. For instance, data breaches (stolen data or corrupted information), compromised identities and cyber-attacks/hacking that need global addressing. Data breach is where private/confidential information is intentionally/unintentionally released to untrusted environment. The crime is mostly masterminded by hackers or even employees and involves trade secrets, credit cards or bank details and other vital personal information. Sony Company has suffered such attacks and in 2014, a group of hackers called the Guardians of Peace (GOP) breached the company’s picture entertainment bringing the systems to halt. The group stole over 100 terabytes of data with social security numbers, salaries, movies and personal information that can be identified. The data leaked through the internet and the group demanded monetary compensation. This is a big blow to the company.
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