Porter’s Competitive Forces Model to explain competitive advantage
Porter’s Five Forces model was developed by Michael E. Porter. It is used for the identification and analysis of the five competitive forces that are found to shape any industry. It helps in the determination of industry’s weaknesses and areas of strength. These forces with respect to the TF Company have been elucidated in the following.
Competition in the industry
TF Company is expecting a surge in the competitive rivalry. A similar chain is opened in the nearby areas. The Company needs to ensure that the pricing of the products is competitively priced. The consumers can easily shift to a newer brand. Based on this, the company needs to develop a differentiation strategy or focus on the development of unique value proposition that is offered by the brand.
Potential of new entrants into the industry
The newer entrants for the products are very plausible. There is a number of organic food chain that can also offer these products to the consumers. They also have capital to role of newer product range. The company needs to maintain the existing niche consumer based by focusing on the quality of the product.