Agricultural and Fishery Situation in Vietnam, The packaging industry is in the downstream process in rice production.
Threat of new entrants This force examines how easy or difficult it is for competitors to join the marketplace in the industry being examined.
An industry with low barriers to enter, having few buyers and suppliers but many substitute products and competitors will be seen as very competitive and thus, not so attractive due to its low profitability. Complementors are known as the impact of related products and services already in the market.
Rice also has a direct effect on social security because it is consumed by a vast majority of the total population and is an important source of income for more than 60 million people living in agriculture and rural areas.
You May Also Like. Finally, look at the situation that you find using this analysis and think through how it affects you. In reality few pure monopsonies exist, but frequently there is some asymmetry between a producing industry and buyers.
The Threat of Substitution: We have already identified the most important factors in the table below.
Moreover, people get access to high quality rice both from foreign and domestic market. Also, the canal and river systems spread densely throughout the country, especially the three major rivers including Red, C? But the fewer suppliers there are, and the more you need their help, the stronger their position and their ability to charge you more.
The Threat of New Entry: Porter makes clear that for diversified companies, the primary issue in corporate strategy is the selection of industries lines of business in which the company will compete.
Creatively using channels of distribution - using vertical integration or using a distribution channel that is novel to the industry.
Buyer Power The power of buyers is the impact that customers have on a producing industry. It requires intense understanding of the marketplace, its sellers, buyers and competitors. In Viet Nam, rice plays an important role in national food security and political stability.
Viet Nam is the country to have cheapest cost of production within South-East Asia, especially in Mekong Delta — cheapest in the world.
The Government is currently working with foreign countries especially Australia. Bargaining power of suppliers: Although, Porter originally introduced five forces affecting an industry, scholars have suggested including the sixth force:Porter's Five Forces Analysis is an important tool for understanding the forces that shape competition within an industry.
It is also useful for helping you to adjust your strategy to suit your competitive environment, and to improve your potential profit. Porter’s five forces model is an analysis tool that uses five industry forces to determine the intensity of competition in an industry and its profitability level.
In conclusion, the rice industry is promising due to several factors both from Porter’s model and from outside sources. The human, natural, knowledge resources are all favourable to rice production in the first place.
Porter's Model Approach for Rice Industry Essay Why should Vietnam develop rice production as its competitive advantage? Rice is one of the leading food crops in the world with 85% of its production accounted by human consumption (The Importance of Rice. The Five Forces Model was devised by Professor Michael Porter.
The model is a framework for analysing the nature of competition within an industry.
The short video below provides an overview of Porter's Five Forces model and there are some additional study notes below the video. Named for its creator Michael Porter, the Five Forces model helps businesses In Porter's model, the five forces that shape industry competition are: While Porter's Five Forces is an.Download