Competitive pressure faced whilst developing use of e-business
In this assignment I will be explaining the competitive pressure on two contrasting business
organisation to develop their use of e-business. I will be providing evidence such as screen
prints to back up my information. The two businesses I will be using are Asda and Snapchat.
This two businesses are online businesses that are used 24/7.
Porter five forces
Porter’s five forces allow Asda to analyse the influences on the industry in which Asda
operates. It highlights where Asda has developed a competitive edge over its rivals. The five
forces is a famous and powerful business framework to analyse where power resides in a
business model. The main purpose of the Porter’s five force model is to find a position in an
industry where a company or business model can defend itself against competitive forces or
can influence them in its favour.
Asda
Branding
Brand reputaon is how a specific brand is viewed by others. There are businesses that have
always understood that they were selling brands before the product. Asda is a brand and
also serves as the core strategic advantage. The company brand was expanding on branded
packaging and the promotion of an “every penny counts” environment. The company has
strong brand image which is recognisable from far distance and is associated with good
quality, trustworthy goods that represent excellent values.
Bargaining power of suppliers
Bargaining power of supplier is the force that represents power of suppliers that can be
influenced by major grocery chains and that fear of losing their business to the large
supermarkets. Therefore, this consolidates further leading positions of stores like Asda in
negotiating better promotional prices from suppliers that small individual chains are unable
to match. However, UK based suppliers are also threatened by the growing ability of large
retailers to source their products from abroad at cheaper deals. The relationship with sellers
can have similar effects in constraining the strategic freedom of the company and in
influencing its margins. The forces of competitive rivalry have reduced the profit margins for
supermarket chains and suppliers.
Threats new competitors
The threats of entry of new competitors into the food industry are low. This means that new
entrants have to produce something at an exceptionally low prices or high quality to
establish their market values. Gaining planning authorisation from local government takes a
considerable amount of time and resources to establish new supermarkets and this is
In this assignment I will be explaining the competitive pressure on two contrasting business
organisation to develop their use of e-business. I will be providing evidence such as screen
prints to back up my information. The two businesses I will be using are Asda and Snapchat.
This two businesses are online businesses that are used 24/7.
Porter five forces
Porter’s five forces allow Asda to analyse the influences on the industry in which Asda
operates. It highlights where Asda has developed a competitive edge over its rivals. The five
forces is a famous and powerful business framework to analyse where power resides in a
business model. The main purpose of the Porter’s five force model is to find a position in an
industry where a company or business model can defend itself against competitive forces or
can influence them in its favour.
Asda
Branding
Brand reputaon is how a specific brand is viewed by others. There are businesses that have
always understood that they were selling brands before the product. Asda is a brand and
also serves as the core strategic advantage. The company brand was expanding on branded
packaging and the promotion of an “every penny counts” environment. The company has
strong brand image which is recognisable from far distance and is associated with good
quality, trustworthy goods that represent excellent values.
Bargaining power of suppliers
Bargaining power of supplier is the force that represents power of suppliers that can be
influenced by major grocery chains and that fear of losing their business to the large
supermarkets. Therefore, this consolidates further leading positions of stores like Asda in
negotiating better promotional prices from suppliers that small individual chains are unable
to match. However, UK based suppliers are also threatened by the growing ability of large
retailers to source their products from abroad at cheaper deals. The relationship with sellers
can have similar effects in constraining the strategic freedom of the company and in
influencing its margins. The forces of competitive rivalry have reduced the profit margins for
supermarket chains and suppliers.
Threats new competitors
The threats of entry of new competitors into the food industry are low. This means that new
entrants have to produce something at an exceptionally low prices or high quality to
establish their market values. Gaining planning authorisation from local government takes a
considerable amount of time and resources to establish new supermarkets and this is
