INSTITUTO POLITÉCNICO NACIONAL

ESCUELA SUPERIOR DE COMERCIO Y

ADMINISTRACIÓN,
UNIDAD SANTO TOMÁS

NOMBRE DEL ALUMNO:

JUAN MANUEL VÁZQUEZ GONZÁLEZ

ACTIVITY 2:
VALUE CHAIN ANALYSIS & THE 5 COMPETITIVE
FORCES THAT SHAPES AN STRATEGY.

BOLETA NO:
20210C0308

MATERIA:
ADMINISTRACION ESTRATEGICA

PROFESORA:
ADAME NAVA DIANA YADIRA

FECHA DE ENTREGA:
06.11.2023

GRUPO:
I322

Índice
Introduction.......................................................................................................................................1
Activated 2:.......................................................................................................................................2
Value Chain Analysis & The 5 competitive forces that shapes an Strategy........................2
Porter's 5 forces...............................................................................................................................2
Johnson & Johnson.........................................................................................................................2
Organizational structure of the company.....................................................................................3
Thus, Porter's five forces reflected in the diagram are:..........................................................4
Example of new competitors..........................................................................................................6
Example of the bargaining power of suppliers.............................................................................6
Example of customer bargaining power.......................................................................................6
Porter's Five Forces Model Template...........................................................................................7
Referencias......................................................................................................................................8
Introduction

Companies currently develop in very competitive environments in which,

increasingly, it is necessary to be vigilant so as not to lose market share in the
Domain of Economic Activity (DAE). For this, it is essential to continually analyze
the competition to anticipate trends. Porter's 5 Forces model or Porter's diamond is
one of the best tools to understand the competitive fabric of an industry.

Porter's 5 Forces is a strategic diagram widely used in the business sector that is
used to analyze the competitive forces of a company. In this way, take advantage
of present market opportunities and at the same time reduce possible threats.

This model was created by Michael Porter in 1979 with the objective of analyzing
the profitability of a specific sector, taking into account the market structure to
assess whether it is possible to establish a business in said area.

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Activated 2:

Value Chain Analysis & The 5 competitive forces that shapes an Strategy.

In this section, you must upload the summary of both topics, Value Chain Analysis
& The Five Competitive Forces, watch the videos.

Then, build an example matrix of the 5 competitive Forces by using as a base the
company where you currently work, or choose a global company to analyze and
build the matrix, also you can use the company chosen in the previous activity. It
is important to identify the level of each force ( low, medium, high).

You are allowed to used additional bibliography to complement your summary.

Upload your work at the “actividad a cargo del docente” section.

Porter's 5 forces

Porter's 5 forces make up a study model of the competitive structure of an industry

in which the following are analyzed: the bargaining power of customers, the
bargaining power of suppliers, the threat from substitute products, the threat that
They represent incoming products and rivalry between competitors. Thus, by
analyzing these five forces, the company can understand its position in a market
and make strategic decisions.

Johnson & Johnson

Johnson & Johnson is an American multinational company, founded in 1886,
manufacturer of medical devices, pharmaceuticals, personal care, perfumes and
baby products. Its headquarters are located in New Brunswick (New Jersey, USA).
The corporation is made up of some 230 subsidiary companies that operate in
more than 57 countries, whose products are sold in more than 175 countries.
Johnson & Johnson brands are numerous in medications and first aid supplies.

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Organizational structure of the company.

The Johnson & Johnson model of Porter's 5 Forces, named after its creator,
Michael E. Porter, requires us to focus the analysis on: customers, suppliers,
substitute products, potential new competitors and the competence. By analyzing
the threats from these competitive forces, we can determine our position in the
market and understand why we have our current market share.

In Porter's diamond, these five elements (customers, suppliers, substitute products,

potential competitors and competition) are analyzed separately but interconnected,
since each of them affects the level of competition of the organization. Thus, we
can define Porter's diamond or Porter's 5 forces analysis as the representation in

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the form of a diamond diagram of the elements that determine our position in an
industry.

Thus, Porter's five forces reflected in the diagram are:

Threat of Threat of
Bargaining Bargaining Rivalry of
substitute entry of
power of power of current
products or new
customers suppliers competitors
services competitors

The analysis of the general environment and the microenvironment showed us that
Johnson & Johnson responded at a medium level to the opportunities and threats
in the product segment of mass consumption, while the evaluation of the
competitive profile showed us that the competitors have great growth potential and
could even jeopardize the leadership of Johnson & Johnson in the United States in
the segment of massive consume.

The internal analysis showed us that Johnson & Johnson has a medium level of
competencies in the mass consumption segment to solve the quality control
problem in its processes productive. Its current organizational structure, internal

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processes and personnel operations are not prepared to overcome quality
problems and recover losses as consequences of withdrawals.

Finally, in the strategy evaluation and control section. a mapping was developed
strategic under five perspectives: learning, internal processes, clients, stakeholders
and financial that helped us establish indicators that will be monitored to determine
the compliance with the goals and objectives of Johnson & Johnson.

Porter's five forces model allows us to identify and describe the five economic
forces that govern each industrial sector. More precisely, it explains how these
forces determine the competitive intensity, the profitability potential and the degree
of attractiveness of each economic sector.

Porter's five forces model has become essential for many companies, as it allows
them to understand the dynamics of their economic sector and advance their
business strategy. This includes you too.

So that you can see how these five economic forces can influence your specific
sector, in this article we explain how they intervene in the markets and we also give
you an example of analysis of each one.

Example of new competitors

The threat of new competitors is high because entry into this market does not have
many obstacles. On a small scale, it requires little capital and a low level of
competition to open a ball factory and become a competitor.

There is no doubt that the target market of these new competitors is completely
different from the target market of large companies, but they belong to the same
industry, and have the potential to become a giant at the local level that can
directly threaten the existence of the companies. multinationals in a particular

5
region or country. This ease of entry of small businesses into the industry is the
reason for the high threat of new competitors.

Example of the bargaining power of suppliers

The bargaining power of professional ball suppliers is low because the main
brands are international and suppliers are looking for a company of their size to
partner with. Secondly, there are a greater number of raw material suppliers than
companies that manufacture the products. This makes them highly dependent on a
single manufacturing company or even all of them, which further reduces the
bargaining power of suppliers.

Example of customer bargaining power

In the case of professional balls, the number of manufacturers is small, which

means that buyers do have the possibility of buying from different companies, but
the options are limited. In addition, there is a large number of potential buyers,
which keeps the bargaining power of customers at a moderate level in this sector.

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Porter's Five Forces Model Template

Conclusion

Each company and market is different and it is not appropriate to generalize

strategies.
But it is true that to be prepared when entering the market, it is important that you
rely on this type of strategic tools to be able to make a business plan that allows
you to analyze your competition and thus be able to make better decisions.
Competition is part of the business environment, and by using Porter's Five Forces
model to analyze your market, you can devise strategies to improve your position
among the competition, increase your potential for long-term profitability, and
optimize your ability to attract new customers.

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Referencias
asana. (n.d.). asana. Retrieved 11 05, 2023, from asana:
https://asana.com/es/resources/porters-five-forces

asivamosensalud. (n.d.). asivamosensalud. Retrieved 11 05, 2023, from

asivamosensalud:
https://www.asivamosensalud.org/quienes-somos/socios/johnson-johnson

economia3. (n.d.). economia3. Retrieved 11 05, 2023, from economia3:

https://economia3.com/ficha-empresa/johnson-johnson-sa/

historia-biografia. (n.d.). historia-biografia. Retrieved 11 05, 2023, from historia-

biografia: https://historia-biografia.com/historia-de-johnson-johnson/

hubspot. (n.d.). hubspot. Retrieved 11 05, 2023, from hubspot:

https://blog.hubspot.es/marketing/fuerzas-de-porter

libertaddigital. (n.d.). libertaddigital. Retrieved 11 05, 2023, from libertaddigital:

https://www.libertaddigital.com/empresas/johnson-johnson/#:~:text=Johnson
%20%26%20Johnson%20es%20una%20empresa,(Nueva%20Jersey%2C
%20EEUU)

simla. (n.d.). simla. Retrieved 11 05, 2023, from simla:

https://www.simla.com/blog/las-5-fuerzas-de-porter