Case Study

Australian Centre For Plant Functional Genomics (ACPFG

2007

Porter 's Five Forces of ACPFG

Porter 's Five Forces is a business tool to perform industrial analysis of competitive environment that influence a company . At the heart of this analysis is the details the threat of new entrants , power of buyers , power of suppliers , rivalry among existing competitors , and the threat of substitute products for market place organizer or transaction service provider industry satisfy following diagram :Figure 1 Diagram of Porter 's Five Forces

Source : Porter , 1998

Rivalry

In any

industries , competitive advantage plays a significant role in winning a competition . The possession of specific competitive advantages is increasingly important since nowadays , customers use emotional side than rational side when deciding which products or services they want to use . Advanced technology does not have to provide competitive advantage for a product if retailers cannot employ it to their fully extent

In ACPFG , the rivalry occurs in the production of superior quality of cereal varieties that are tolerant to stress condition caused by environment such as salt , frost , drought , and mineral toxicity (Ball 2002

This stress condition , if not managed properly , will influence the plant growth and crop productivity . Under such circumstances , the competition in crop productivity is backed up by the development of gene technology in to increase the number of crop , which in turn generates economic wealth . It is true since low crop productivity has caused Australian agricultural industry to lose millions dollar from export opportunity (Ball , 2002

Barriers to Entry

The number of new entrants increase as the barrier to entry reduces in a market . This is because the situation encourages more companies to enter the market , thus increase the degree of competition or rivalry , and drive the profitability to fall . One of common barriers to enter a new market is political and health issue , to name a few

Concerning the ACPFG GM foods , the barriers to entry occur in some market such as in the Europe where they prevent any genetically modified (GM ) process and the GM foods by giving strict labeling and regulatory warnings on such products . The barriers also come from the situation where prohibitive of potential R D and technology suppliers via the sales of technology and the licensor to a company operating in the industry (Ball , 2002

Products Substitution

Impact of product substitution is possibly the most overlooked factor although its impact is damaging . Therefore , it is imperative that business must not only look at what the company 's direct competitors are doing , but what other types of products people could buy instead . The product substitution for GM food is the natural-growth products since in some market like in the Europe , the regulator still prohibit the distribution of GM foods . In other markets that are already opened for GM food such as in the U .S , the competition also occurs between natural and the GM foods (Ball , 2002

Buyer Power

There are some aspects that influence buyer power they composes of size of...