Analysis Of Michael Porter s Five Forces Analysis

â€Å"40 is the new 20† is no longer a phrase of the past, thanks to the cosmetic surgery industry. Injectables such as Botulinum toxin, (aka Botox), Collagen, and Hyaluronic acid are credited with keeping faces wrinkle-free. More invasive procedures, such as Breast Implantation, nose surgery, and the ever popular tummy-tuck, offer enhancements to those body parts the individual is dis-satisfied with (Grundy, 2006). Because of the seemingly instant gratification, the cosmetic surgery industry has witnessed a drastic increase over the last fifty years. Determining where to open a new practice will require completion of market research and a competitive analysis. Michael Porter’s Five Forces Analysis is a powerful tool for evaluating competition†¦show more content†¦Another cost factor to consider is marketing. Because cosmetic surgery advertising is so controversial, it would prove cost effective to spend more money in an effort to secure a reputable marketing agent (Hennink et al., 2010). Very few providers have access to these funds. Although the costs of entry to start a cosmetic surgery center is high, positive return on investment makes it worth the risk. The bargaining power of suppliers is one of the threats on the industry in which price changes or product quality by suppliers have an impact on profitability (Grundy, 2006). Therefore, it is important for the cosmetic surgery practice to research alternate suppliers. The process to produce Botox, which is one of the minimally invasive cosmetic surgery procedures, is quite extensive. To begin, the laboratory cultivates the Clostridium botulinum bacteria. It is the result of the cultivation and the preservation of Clostridium botulinum that categorizes the quality of the toxin manufactured. That, accompanied with the toxin’s high sensitivity to the laboratory conditions makes the toxin production a very fragile process that limited supplies attempt (Schantz et al., 1992). When thinking in terms of supply and demand, the lack of equal substitutions, along with the high demand for the product, gives the supplier an advantage. The bargaining power of buyers can force the supply companies to lower the prices. In a market in which buyers have the power,Show MoreRelatedAnalysis of Con Edison by Using Michael Porter`S Five Forces Model1154 Words   |  5 PagesUNIVERSITY OF NEW YORK LEHMAN COLLEGE ECONOMIC ANALYSIS FOR MANAGERS ANALYSIS OF CON EDISON BY USING MICHAEL PORTER`S FIVE FORCES MODEL INSTRUCTOR: MINE AYSEN DOYRAN STUDENT: Recep Maz What makes electric utilities (Con Edison) monopolistic and why? 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Starbucks coffee s prosperity shows its viability in tending to these outside elements in its industrial surroundings. However, this five forces investigation highlights current industry conditions that force present and developing concerns significant to Starbucks Coffee s business. Following are the five forces of Michael Porter s model. Th ese fiveRead MorePorters Five Forces1036 Words   |  5 PagesAssignment 1 Describe Porter’s Five–Force model and how it is helpful when developing one’s international strategy. Do you see any limitation to Porter’s modeling techniques? 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