Porter’s 5 Forces

The 5 Forces Model considers the degree of power that current and new competitors, suppliers, buyers, and substitute products have in the industry. The more power each group of players has, the less attractive the industry To come to the conclusion, Porter requires you to make a determination of the degree to which each of these forces contributes to the attractiveness/unattractiveness of the market/industry: HIGH/MEDIUM or LOW. The weaker these forces, the more a firm can increase price and make above average profits. This makes the industry a more attractive proposition.

The forces are: potential competitors, substitutes, bargaining power of buyers, and bargaining power of suppliers.
Example Industry Telecommunication

Potential competitors: LOW
If there is a relative ease of entry in the industry, then it will me highly competitive. One firm will always need to come up with new ways to protect its market share. ex. food market stand. On the contrary, if there is mass initial capital required for entry, there will be few players. ex. telecommunication. and be less competitive. When there are only two(Verizon and AT&T) the more the attractive the industry.

Substitutes: LOW
Less the product is unique the more the industry will be competitive. There is no substitute for a phone service. For decades the Telecommunication have not innovated. Why? they don't need to. Because they have a monopoly of the services offered to customers and the customers have no choice but the pay up for these services.

Bargaining power of buyers/suppliers: LOW to Medium
In the phone service arena there is no shopping around for the cheapest plan. Rather, the companies give you a hand full of narrowly price plans. LOW
Suppliers to the telecoms. Suppliers have a LOW to limited bargaining power.

Porter’s theory of analyzing attractiveness of an industry is brilliant. In fact, it covers all of the major components from customers to suppliers to substitutes to competition. It is important to analyze all of these factors with great detail within an industry to understand the attractiveness and the future outlook of the players within them.

So using porters 5 forces we discovered that the Telecommunication industry is highly attractive given its barriers to entry, lack of competition, and bargaining power of the customers. Good industry to put your money in.

Mission Statement

Mission statements are the first step in the development of an organization’s strategic direction. It is developed when an Firm has planned its key business or social goals, and basically a mission statement is a summery of goals forwarded into few lines or paragraph.

It is true a mission statement varies one company to the next, but it ought to if management wants to peruse and attract others into their business. A Mission Statement could me outlined as task, vision, values, and goals to say the least. A good and compelling mission statement encompasses all of the necessary ingredients needed to be better then the next guy while preserving the values of the participating members they play a vital part in the business. And to best mission statement I could find was from google:

"Google's mission is to organize the world's information and make it universally accessible and useful.

As a first step to fulfilling that mission, Google's founders Larry Page and Sergey Brin developed a new approach to online search that took root in a Stanford University dorm room and quickly spread to information seekers around the globe. Google is now widely recognized as the world's largest search engine -- an easy-to-use free service that usually returns relevant results in a fraction of a second.

When you visit www.google.com or one of the dozens of other Google domains, you'll be able to find information in many different languages; check stock quotes, maps, and news headlines; lookup phonebook listings for every city in the United States; search more than one billion images and peruse the world's largest archive of Usenet messages -- more than 845 million posts dating back to 1981.

We also provide ways to access all this information without making a special trip to the Google homepage. The Google Toolbar enables you to conduct a Google search from anywhere on the web, while the Google Deskbar (beta) puts a Google search box in the Windows taskbar so you can search from any application you're using, without opening a browser. And for those times when you're away from your PC altogether, Google can be used from a number of wireless platforms including WAP and i-mode phones.

Google's utility and ease of use have made it one of the world's best known brands almost entirely through word of mouth from satisfied users. As a business, Google generates revenue by providing advertisers with the opportunity to deliver measurable, cost-effective online advertising that is relevant to the information displayed on any given page. This makes the advertising useful to you as well as to the advertiser placing it. We believe you should know when someone has paid to put a message in front of you, so we always distinguish ads from the search results or other content on a page. We don't sell placement in the search results themselves, or allow people to pay for a higher ranking there.

Thousands of advertisers use our Google AdWords program to promote their products and services on the web with targeted advertising, and we believe AdWords is the largest program of its kind. In addition, thousands of web site managers take advantage of our Google AdSense program to deliver ads relevant to the content on their sites, improving their ability to generate revenue and enhancing the experience for their users"

I think although long but this mission statement summed it all. From the history of the company to the different ways the company helps businesses and consumers out. It seems to me like a company that makes its money by helping others but it not in non-or-profit business. Companies like these are rarely to find. Which is the reason why I think this mission statement is one of the best.