Porter’s five forces analysis of Masafi Water Company in UAE
Porter’s five forces analysis were developed by one Michael E Porter in 1979 (Hill, 2010). He developed this as a framework that could be used to evaluate and assess a company or organization’s competitive strength and position. Porter’s five forces of competitive analysis is based on his assertion that there are five forces that are used to determine an organization’s attractiveness to its target market and the intensity or level of its competitiveness. This approach first of all gauges whether or not the organization in question possesses all of the five forces in Porter’s framework and the level of intensity of each organization. Analysing these forces reveals the organization’s strengths and weaknesses based on the level of intensity or lack thereof in each force.
The company under analysis in this case is Masafi waters, a water bottling company in the United Arab Emirates. Masafi Waters bottles natural mineral water and delivers it through their delivery points in Dubai. Porter’s five forces analysis is especially useful during the launch of a new product as it is used to analyse the product’s potential profitability in the short and long run. It is also used to identify a company’s strength in order to grow the strong area and to identify a company’s weakness so as to improve it. They say an organization is only as strong as its weakest link and Porter’s five forces analysis can help an organization pin point its weak points so that it can work towards strengthening them.
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