英语论文网

tute products, the threat of the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers, and the bargaining power of suppliers.Industry attraction is key factor of enterprise profit ability. Competitive strategy is the source of competitive law of enterprise’s industry attraction. Any industry of international and domestic, no matter producer or service provider, all law of competitive will be embodied by these five competitive forces (Deck, 2001). Therefore, Porter’s five forces model is a analyze tool when an enterprise makes competitive strategy. These five forces will decide how industry profit power is. For example, the bargaining power of supplierswill influence original materials cost and other cost; the intensity of competitive rivalry will influence price and competitive cost; the threat of the entry of new competitorswill restrict price, and invest for recovery incursion. If the enterprise can influence industry competitive advantage in the aspect of five forces, then enterprise will improve industry attraction by the root, thus change industry competitive law can help the enterprise gain the final success. We can easily get to undersstand with the help of following table.

In the industry of dairy Products, new competitor is influenced by scope economy, products differentiation, sales branch channel, and anticipate revenge. The scope economy of dairy products industry mainly means stock and produce. Original milk price has big influence for cost of dairy products enterprise. Nestle company controlled abundant milk resource of good quality and low price. Therefore, the intense competition of milk source takes big obstruction for the new entrant. Scope economy of the stock raised entry barrier. In the aspects of produce, milk farm use product line can takes professional management and lower total cost of transport. Nestle group owns advanced milk cow-farming technology, automatic facility, and global milk intelligence factory. The scope economy which produces aspect makes nestle group acquire big income. The good brand is main choice object of consumer. Because good brand takes good quality, so the customers build up definite loyalty. Thus the new competitor will face special risk. Once they enter failure, they will lose capital. Some magnate of dairy products, like nestle, their sales branch channels have been perfected. For the new competitors, they want to get sales branch channels, not only need human resource, material resources, and financial resources. They still need accumulation of experience. These factors will be a wall for the new competitors(Davis, 1999).

Soya-bean milk is main substitute product for dairy products industry. For the consumer that allergic to milk, soybean milk is better choice. On the other side, price of milk is higher than soybean products. Actual substitute products take some forces to milk industry, but it is still small(Sood, 2002). The supplier product is main input in the dairy products industry. The supplier don’t need competitive with other substitute products. Otherwise, the supplier group can still performance realistic intimidate of forward integration, so the bargaining power of supplier will be increased. The direct behavior is some country’s milk-cow price rise continually, original milk price as well as higher. In the supermarket, have various brands of dairy products. This is not only providing abundant inf