For the case of Patriot One Technologies Inc., the Porter’s Five Forces analysis framework evaluates the level of completion within the technology industry. Thus, based on this framework, the completion facing Patriot One Technologies Company does not only originate from the competitors. Instead, it depends on the five basic forces which encompass the threats from new entrants, bargaining power of suppliers, bargaining power of buyers, the substitute products threats and the conflict present among the existing competitors.
The New Entrant Threats
New entrants can pose a significant competitive threat to a company. For instance, new entrants in the radar technology industry can introduce alternative ways of doing things that exert pressure on the company through cost reductions, lower pricing strategies and provision of value proposition to clients (Bruijl, 2018). Therefore, Patriot One Technologies has to address all these challenges and establish an efficient barrier that defends its competitive edge.
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Suppliers’ Bargaining Power
Patriot One Technologies Company builds its PATSCAN RADAR sensors using the materials bought from the numerous suppliers of the technology industry. Dominant positioned suppliers can reduce the profit margin of this company by using their negotiating power to extract higher prices (Martin, 2018). Thus, the company should create an effective supply chain with diverse suppliers to alienate this challenge.
Buyers’ Bargaining Power
Buyers will always prefer the best available offer at the lowest price possible. The smaller the customer base of Patriot One Technologies the more powerful the bargaining power of those customers. In this case, the customer base can seek offers and discounts hence reducing the profit margin of the company (De Bruin, Marques & Van Roekel, 2016). Thus, the company should create a large customer base to alienate this challenge.
The Substitute Products Threats
The profits in the radar technology industry will suffer if new products that meet the needs of the customers in different ways are introduced. Even worse, the threat from substitute products is higher if the products offer a unique different value proposition (De Bruin, Marques & Van Roekel, 2016). To alienate this challenge, Patriot One Technologies Inc. should not only be product-oriented by also service-oriented.
The Conflict among the Existing Competitors
The Conflict among the Existing Competitors
Diversity and number of competitors
The New Entrant Threats
Number of new entries and economies of scale.
The required capital.
The New Entrant Threats
An intense conflict among the existing players will reduce the prices and consequently low profitability. The company runs in a very competitive technology industry.
The Substitute Products Threats
The number of substitute products and buyers’ propensity to them.
The Substitute Products Threats
Buyers’ Bargaining Power
The number co customers and their prize sensitivity
Suppliers’ Bargaining Power
The size and number of suppliers.
The required capital.
Buyers’ Bargaining Power
Suppliers’ Bargaining Power
Conflict among the Existing Competitors
References
Bruijl, G. (2018). The Relevance of Porter's Five Forces in Today's Innovative and Changing Business Environment. SSRN Electronic Journal . doi: 10.2139/ssrn.3192207
De Bruin, L., Marques, M., & Van Roekel, M. (2016). Porter's Five Forces EXPLAINED with EXAMPLES | B2U. Retrieved 18 November 2019, from https://www.business-to-you.com/porters-five-forces/
Martin, M. (2018). Porter's Five Forces: Analyzing the Competition. Retrieved 18 November 2019, from https://www.businessnewsdaily.com/5446-porters-five-forces.html
