TO: Jesse Cash, CEO

BY: Lauren Kesler

DATE: February 24, 2012

SUBJECT MATTER: Strategic strategy and Five Forces Unit

The use of the Porter's Five Causes Model assists with accessing where the power lies in a business scenario. This model is considered an important a part of a organizing tool arranged because it can assist a business get their talents and enhance their weaknesses to compete with different businesses. Any business that wants to develop their firm and provide better services or products to a worldwide industry should observe how their business does on Porter's Five Forces Version.

One power is the risk of replacement products that means how conveniently a customer can switch to our competitors. If we can keep our prices low and the quality substantial, our customers will be happy and stay with our goods. By doing this it is going to allow all of us to become a more recognizable and profitable business within the global bicycle sector because we are known for inexpensive, high quality bicycles and items. I would recommend this tactic due to the fact that this will keep our customers since without our customers, all of us don't have a company.

Another power in the unit is the menace of new traders. Since the business is a pretty complicated and high cost, the threat of recent entrants is pretty low. It would be hard for any new business to grow to the size quickly enough to overcome us, especially if all of us keep ongoing to become bigger. We can reduce the risk of new entrants simply by closely guarding our transact secrets and thus forcing others to generate various other strategies.

Industry competition is another major force is business since it's in which the intensity of competitors occurs. Within our organization we have incredibly loyal buyers who like our products and will only work with our goods so we need to be reaching out to customers who have are undecided or who have prefer or competitors. 1 tactic for doing that strategy will be to reach out to these specific buyers and...


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