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Hi I Need Help With Essay On 5 Porter Forces Paper Must Be At Least 500 Words Pl

Hi, I need help with essay on 5 porter forces. Paper must be at least 500 words. Please, no plagiarized work!

A company offering goods at cheaper prices tends to attract more potential clients than one whose prices are exorbitant (O’Shaughnessy, 2006, p.12). Michels Patisserie as a large industry faces rivalry from other enterprises in Australia which leads to fluctuations in the eventual gains. Competitors who try to drive the industry out of business are major rivals, and this can be achieved through bad rumours and law suits. In the long run, the competition reduces the profits and at times if healthy, causes gain in the industry. However, the firm ensures that strategies to control rivalry are maintained and that it ensures the highest levels where competition is involved by offering the best services.

Differentiation of goods is common in the food industry, and this is no different in a cake firm. Substitutes provide an easy outlet to consumers of goods when prices of those that they consume go up. A large cake industry faces low gains when the price of cake goes down, and the clients opt to consume bread instead. Threats of substitutes in the markets will lead to low profits due to high prices that the customers cannot afford. The firm has however dealt with such threats by ensuring that the costs of production are low and that customers can obtain quality and cheap products. Various advertisements have been implemented to create awareness that ensures consumption of cakes even when prices are up.

The income of a consumer at any point in time determines what and how much is to be bought. The purchasing power of a person is subject to income. A company should set up products and goods where people are able to get and access them. The products to be offered and the prices set should meet the ability of people to purchase. As a large cake industry based in Australia, Michels Patisserie has to ensure that the goods produced meet such abilities. The firm has ensures that the profits obtained are those projected by availing products to many consumers through branching


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