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Number of words: 3000 (+/- 10%)

Similarity: LESS than 8%

Minimum of references: At Least MUST use 10 different sources (place where is taken the info, do not misunderstand with number of references)





  1. INTRODUCTION (100 words) (Use at least the sources of references) USE 3 CITATION
  3. Industry sector where operate the company.
  4. Should mention all the branch where the company operate and number.
  5. Current Turnover
  6. Number of employees
  7. Products & services
  • Porter’s Five Forces Model (700 words) (EXTERNAL) ZARA SPAIN
  • Use the analyse the competitive structure of bullet one of its key market and reasons it point is attractive. ( THE ORIGIN MARKET COMPANY ZARA SPAIN)
  • MUST USE 2 point for each area of Porter’s Five Forces Model
  • Use bullet point / DIAGRAM
  • MUST be related to the company
  • Each forece MUST be discussed and assessed as HIGH, MODERATE or LOW.
  • Value chain level (900 words) (INTERNAL) ZARA COMPANY (FOR THE WHOLE   not just zara SPAIN )
  • Use value chain diagram and use the reference for diagram and for each area/heading put 5 BULLET POINTS.
  • Tell how the company have implication the diagram.
  • How the company create value?
  • Pick 2 bullet point for each area (for each the company is more good) and explain.
  • VIRO (500 words) (INTERNAL) ZARA FOR THE WHOLE COMPANY ( not just zara SPAIN )
  • How are they valuable and rare?
  • Don’t do it with ticket but do discussions for each area.

**Analyse, using my techniques/theoretical models-, core competences and competitive advantage and how it differentiates it from competitor. Using Value Chain and VRIO analysis state the competitive advantage ( 1400)

  • External environment (PESL) (EXTERNAL) (500 words)


  • ECONOMIC \ ( data)
  • SOCIAL (data)

If you find a point that related with the company but you cannot put under the area ( PESL) you are allowed to use a subheading which is related  .


Discuss the implication of the current external environment and identify the challenges that will affect the competitive position of the company (major issues only ) 500 word

Political economical social and legal

Legal what jurisdiction use the country.

Government ideology (ZARA SPAIN )



Based upon research, recommend and justify a new segment that company should undertake justify a potential market ( segment) (DO SEGMENT) that the company could consider moving into. 300 words

(73) The Five Competitive Forces That Shape Strategy – YouTube IMPORTANT VIDEO


THOMAS STEWART: I am Tom Stewart, Editor and Managing Director of the Harvard Business Review.

Our guest today is Michael Porter, Professor at Harvard University and Head of the Institute for Strategy and Competitiveness.

He is the author of the forthcoming HBR article, “The Five Competitive Forces That Shape Strategy”.

A reaffirmation, update, and extension of his groundbreaking 1979 article “How Competitive Forces Shape Strategy”.

Mike, thanks for joining the program.

To start, let us remind our viewers of what the five competitive forces are.

>> MICHAEL PORTER: Well Tom, the basic idea of the competitive forces starts with the notion that competition is often looked at too narrowly by managers, and the five forces say that, yes you are competing with your direct competitors, but you are also in a fight for profits with a broader extended set of competitors, customers who have bargaining powers, suppliers who can have bargaining power, new entrants who might come in and kind of grab a piece of the action, and substitute products or services that essentially place a constraint or a cap on your profitability and growth.

So the five forces is kind of a holistic way of looking at any industry and understanding the structural underlying drivers of profitability and competence.

>> STEWART: So I use this to think about my rival makes it difficult for me.

The threat of substitutes means I cannot overcharge.

The threat of new entrants’ means I cannot overcharge.

>> PORTER: Right.

>> STEWART: The same thing with the buyers and suppliers.

>> PORTER: The buyers and suppliers, and there is underlying drivers of each of those forces

that the model really sort of unveils and then you can actually apply this.

Every industry is different.

Every industry will have a different set of economic fundamentals, but the five forces

help you hone in on, first of all, what is really causing profitability in the industry.

What are the trends that are most likely to be significant in changing the game in the


Where are the constraints, which if you can relax, it might allow you to find a really

strong competitive position?

>> STEWART: So how would you apply this analysis to an industry?

Airlines for example.

>> PORTER: Airlines is a great industry.

Actually you will see in the article or you have seen in the article that there is a chart

that compares profitability of industries, and airlines, I think has been on the bottom

of that list for decades.

It is among the least profitable industries known to man, and the five forces really allow

you very quickly to understand why.

I mean, let us just go around the chart.

The nature of rivalry is incredibly intense and it is almost exclusively unpriced.

It has been very hard to differentiate, get the customer to wait even an extra two or

three minutes for another flight if they can get on the flight with a cheaper price.

So there has been a very intense price competition, low barriers to entry.

Constant stream of new airlines coming into the industry despite the fact that probability

is low.

It always puzzles me.

>> STEWART: Low barriers to entry because you can rent a plane, you do not have to buy


>> PORTER: You can rent a plane.

You can lease a gate.

It is all generic technology.

You can start with one flight between two city pairs.

There is no real need to have a whole network in the beginning, and yet, people keep coming


I think it is just one of those “sexy” industries.

It is a great example of how sexiness or coolness or hotness or cheapness has nothing to do

with industry profitability.

The underlying structure is what drives profitability.

Yeah, the customer is very fickle and price sensitive.

Suppliers of aircraft and aircraft engines and even aircraft gates at airports now have

a lot of clout.

They can bargain away most of the profits.

GE, and Rolls-Royce, and Airbus, and Boeing make a lot more money than Airlines.

They get most of the profit.

And then of course, there is always the substitute of getting on the train or driving your car

or shipping your goods by air and that sets kind of kept the consumer.

>> STEWART: You have powerful suppliers of labor too.

That is another powerful supplier.

>> PORTER: Right, exactly.

There is a great case where you have unionized labor.

Unlike other industries, in this industry particularly with the pilots, the labor can

literally shut you down, and there is no way around them.

So, it is an industry where there are spurts of what you might call mediocre profitability

punctuated by long periods of terrible profitability.

>> STEWART: So everyone of the five forces is very strong in that industry and you could

take another industry where the five forces are relatively benign.

>> PORTER: Right, like soft drinks.

I mean, soft drinks have been a license to mint money and again, it is the opposite kind

of analysis.

When I talk with students, we kind of joke around, there are five-star industries where

all the forces are attractive like soft drinks.

There are zero-star industries where all the forces are unfavorable like airlines and we

are always trying to understand, okay, what is the configuration of underlying economic

drivers that is going to really shape the profit potential of this industry and then

armed with that insight, what do I do about it?

How do I try to relax the constraint that is holding back industry profitability?

How can I position myself to kind of insulate from some of the gales, gale winds of those


Those implications of the five forces are something that this new article has developed

in much more detail.

>> STEWART: You conceived this framework nearly three decades ago and it has been the most

extensively used both in management scholarship and management practice of any strategy framework,

and it changed the definition of strategy in a lot of ways.

In these three decades, what have you learned?

What have you learned about the application of these ideas in the real world of business?

>> PORTER: Well, the wonderful thing of course we learned is that these concepts can be applied

to literally any, any industry, to product, to service, high-tech, low-tech, emerging

economies, developed economies.

Indeed, what one of the powers of the framework is it helps you get avoid getting trapped

or tricked by the latest trend or the latest technological sensation, and really allows

you to focus on the underlying fundamentals.

The internet is a good example.

We got very, very confused by the internet because people saw the internet as a force

as supposed to really enabling technology that might or might not impact the underlying

structure of the industry.

So I think one thing I have learned is the framework is very, very robust, but I have

also learned that there is a lot of confusion and complexity in actually applying the framework

in actual practice and we tried to clear as many of those areas up as we could in this

new article.

For example, how to think about rivalry?

How do we understand when rivalry is really positive-sum, which allows many companies

to do well?

When does rivalry become really zero-sum, where everybody is kind of dragged down into

a destructive battle that you cannot win.

>> STEWART: Well, I can understand zero-sum.

I mean, if we get in a price war, the only one who wins is the consumer, which is nice

if you are a consumer.

>> PORTER: Yeah.

>> STEWART: But what do you mean by positive-sum competition?

>> PORTER: Well, the trouble with the zero-sum competition is then the consumer gets a little

price, but they really got no choice, and a positive-sum competition is where companies

can compete on different attributes, services, features, customer support, that is actually

relevant to particular groups of customers.

The most really positive-sum competition is where companies are really competing on different

things in order to meet the needs of different segment.

>> STEWART: So we are growing the pie and there is a piece for each of us.

>> PORTER: There is a piece for each of us.

In fact, one of the things we talked about in the new article, one of the things I did

in the new article that we really probably did not have the experience to do so many

years ago was really talk a lot about the implications.

If this is the way competition works, what do you do about it?

One of them is might be in some industries rather than go for market share against your

rivals, you might be much better off just really expanding the pie, expanding the whole

profit pool of the industry.

That may be the best way for a market leader to actually improve their circumstances rather

than to trigger a destructive battle with their head-to-head rival.

>> STEWART: How should a company get started using the five forces framework?

You are working your strategy and you decide, “This really works for me.”

How do you begin?

>> PORTER: Well, I think industry analysis and looking at the competitive environment

is of course, probably the starting basic discipline of any strategy formulation process.

If you do not know what your industry looks like, if you do not know how it is changing,

if you do not know what the drivers or competition are, strategy is going to be marginally useful,

if not destructive.

So we got to start with industry analysis figuring out what your industry is and drawing

the right boundaries.

>> STEWART: That is not always easy.

>> PORTER: It is not always easy.

We have added a box in this new article, which really addresses that question because I encountered

so many companies that struggled with industry definition, identifying really what the industry

structure is in your particular industry.

And then there is another thing that a lot of managers do.

They kind of go through the industry analysis and they say, “Okay.

This is good, this is bad.

This is good, this is bad.”

So this is an attractive industry or unattractive industry, but of course the real question

is how is that industry changing?

Some have believed and taken the five forces as really a static snapshot, but of course

the five forces give you the tools for understanding the dynamics and where is that industry structure


How are buyers and suppliers and substitutes and potential entry evolving?

And then what implications does that hold for your strategy?

How do you position yourself to find that spot within the industry where you can command

a really good profit given the five forces?

How can you maybe reshape the nature of the industry structure?

We have got some great new examples that are very, very contemporary in this article that

I think will help the manager community and the investor community really understand the

application of this.

>> STEWART: Sometimes when people think about strategy, they think about a group of people,

maybe from a management consulting firm or maybe on the 33rd floor of the building, whatever

it is, but it is sort of elite strategy priesthood that goes in and does this.

They are almost divorced from the rest of the management of the company, the 99% of

the other people working in the company.

How can a strategy become part of the day-to-day life of a working stiff manager in a company?

How do you apply this framework, this thinking?

How do you use it?

>> PORTER: Well, we think that this way of looking at an industry needs to be very, very

broadly understood in the organization.

The thing about it is that managers, even rank and file employees, it is intuitive.

People understand.

We have these customers, we have these suppliers, we are struggling with them everyday.

They are trying to get a better deal, we are trying to get a better deal.

So intuitively, I think this is a way of helping people sort of step back from all the excruciating

little details that characterize any business and say, “What is really important here?”

And then of course we have learned that strategy is completely useless, again, unless the results

of the strategy process, the position that you choose to occupy, the way you are going

to drive your company is well understood quite broadly because the number one purpose of

strategy is alignment.

It is really to get all the people in the organization, making good choices, reinforcing

each other’s choices because everybody is pursuing a common value proposition or common

way of gaining competitive advantage.

I remember when I wrote this article, there were many people who believed that strategy

documents should be locked in the safe at night and should not be made available to

the rank and file.

There was a concern that some competitor would find some secret.

Well, we have actually learned now that it is the opposite.

Your employees got to know your strategy, your channels have to know your strategy,

your suppliers have to know your strategy.

>> STEWART: Your competitors probably knew it already.

>> PORTER: Well, and frankly, again the competition is not zero-sum.

If every company finds a unique need that it can set out to meet, if it tries to deliver

something different than its rivals, multiple rivals can be successful.

If your competitors can understand what you stand for and what you are committed to, maybe

they will make a different choice, rather than get dragged into this kind of mindless

price wars that we see in so many industries.

>> STEWART: The five forces that shape strategy have been around for 30 years, they are going

to be around for, well, they have been around long before you wrote about it.

>> PORTER: That is right.

>> STEWART: They have been around as long as business has been around.

They are going to be around as long as business is around.

The new article is just fabulous.

Thank you so much.

>> PORTER: Thank you.

Well, I am looking forward to kind of getting another surge of feedback from the practitioners

and we will keep learning.

>> STEWART: Thanks.

>> PORTER: Thanks Tom.

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