King of Shaves Assignment Example | Topics and Well Written Essays - 2000 words

King of Shaves - Assignment Example The paper outlines the challenges faced by the King of Shaves in the industry using Porter’s five force model and also assesses the generic strategies that the company applies in its operation. Table of Contents 1.0 Introduction 5 2.0 Findings 5 2.1 Porter’s Five Forces Model 5 2.1.1 Rivalry among Current Competitors 5 2.1.2 Threat of New Entrants 5 2.1.3 Bargaining Power of Buyers 5 2.1.4 Bargaining Power of Suppliers 6 2.1.5 Threat of Substitutes 6 2.2 Analysis of the Challenges Facing King of Shaves Using Porter’s Five Forces Model 6 2.2.1 Rivalry in the Market 6 2.2.2 Threat of New Entrants 6 2.2.3 Bargaining Power of Buyers 6 2.2.4 Bargaining Power of Suppliers 7 2.2.5 Threat of Substitutes 7 2.3 Opportunities and threats for King of Shaves 7 2.3.1 Opportunities 7 2.3.2 Threats 8 2.4 Strategy of King of Shaves 8 2.4.1 Cost Leadership 8 2.4.2 Differentiation Strategy 8 2.5 The Concept of Stakeholder Analysis 9 2.6 King of Shaves’ Stakeholder Framework 9 2.6.1 Stakeholder Framework 9 2.6.2 Mapping Stakeholder Power and Interest 9 3.0 Conclusion 10 1.0 Introduction The King of Shaves is a top UK manufacturer of shaving and skincare products that was founded in 1993 by Will King with a seed capital of ?15,000. King formed the company with his partner Hiten Dayal, under umbrella firm, Knowledge & Merchandising Inc. Since its establishment, the King of Shaves as grown as a brand and overtaken some of the most critical players in the industry. The company is now second to Gillette in the UK market and is picking in the U.S. market as well as other global markets such as China and India among others. However, the company faces strong opposition from its competitors in its growth focus. This report analyses The King of Shaves’ operation industry using Porter’s five force model and also proceed to identify opportunities, strategies of the company and closes stakeholder analysis. 2.0 Findings 2.1 Porter’s Five Forces M odel Michael Porter developed a framework that assists business managers in their strategic decision-making process. Porter’s Five Competitive Forces Model is crucial for exploring the structure of an industry in which an organisation operates. Consequently, managers use the model to establish competitive edge over their market rivals (Ahlstrom & Bruton 2010). Porter’s five forces that drive competition in an industry include: 2.1.1 Rivalry among Current Competitors The extent of rivalry among companies varies from one industry to another. These variations in industry competition levels are of particular interest to strategic analyst. An industry with low level of competition is perceived as disciplined. Ruthless competition may prove detrimental to firms within an industry. 2.1.2 Threat of New Entrants The likelihood of new players getting into the industry also affects the level of competition. An industry with high level of barriers discourages new market participan ts from invading the market and exhibit attractive profit levels for existing firms. On the other hand, an industry with low entry barriers or free entry encourages new entries and exhibits low profitability (Ahlstrom & Bruton 2010). 2.1.3 Bargaining Power of Buyers The bargaining power of buyers refers to the ability of buyers to influence an industry. In an industry where the buyer power is strong, the buyers have great control of pricing of products