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  • Essay / Porter's Five Forces Analysis - 793

    While employed in the retail industry for over three years, I developed a passion for learning about the different ends and outcomes of 'industry. The industry is currently growing for the Follett Bookstore Company, founded in 1873, in the state of Illinois. In most businesses, I am convinced that Porter's Five Competitive Forces have been used in several ways. “The entry of new competitors into the sector occurs mainly at the start-up of a new business or organization and involves a different increase in capacity. There are many ideas to consider when starting out, such as economics, production differentiation, capital requirements, cost of conversions, and lack of distribution according to Porter. All these steps must be taken into account when becoming a new entrant. Technology is taking over. Individuals have an idea and before they go all out, it's online and maybe someone else is using it. “As Porter mentioned in the article, “substitutes need to be found and examined and ensure that other products are there to perform the same function as what your company produces.” “Otherwise, you can win in most cases. However, it can limit the profit potential of the industry by setting a price so that the company does not lose profit. Porter expresses the bargaining power of buyers in the five forces of competition and explains that "buyers compete with an industry by putting downward pressure on its prices, bargaining for higher quality service." The company or organization plays against the competitor to the detriment of the profitability of the sector. “Everything is based on the market size situation according to Porter (P. 271).” According to Porter's Five Competitive Forces, “the bargaining power of suppliers is what individuals working in the world of marketing and retail see regularly. Individuals make offers daily and suppliers put pressure on individuals interested in the merchandise. They put pressure to increase prices or even reduce product quality. While working in a bookstore that sells books, clothing, technology, snacks, health products, beauty products and much more, they enable competition with surrounding businesses within the community. When students do not have a way to travel from one place to another, the bookstore is very useful and safe. Having competitors like textbook rentals, Amazon, and Chegg that make money from students but don't give back to the university overall makes bookstore books harder to sell when it comes to retail. acts only as normal textbooks. Honors textbooks are required for some courses and necessary at the request of the professor, but overall, the Follett/JSU Bookstore gives back to the university. While the supplier is basically trying to stay at the top of the Jackson market while having a small market. Additionally, store managers are always looking for better quality and quantity items when bidding on the company's products and books for each quarter. There they try to make a sale, individuals should not always increase the price but stay within a certain range. The company still competes every year, but Follett Bookstore has better policies and procedures, and the funds go back to the university to equip and build a better store.