PORTER'S FIVE FORCES $-$ FOOD DELIVERY CASE STUDY

Directions:

Below is an overview of Porter's Five Forces, a fundamental framework for understanding industry competition. Please review this, then read the background information about the food delivery industry. Afterward, thoroughly answer ALL of the questions provided, applying the concepts of Porter's Five Forces to a real$-$world scenario. The written answers should be in APA format $($no minimum or maximum word count$).$ Use of generative Al is prohibited and, if discovered, will result in academic sanctions.

Understanding Porter's Five Forces:

Porter's Five Forces is a strategic framework created by Michael Porter, a leading expert in business strategy. It helps you analyze the competitive landscape of an industry to determine how attractive it might be for companies looking to enter or operate within it$.$ The five forces that shape competition in any industry are:

Threat of New Entrants: This force looks at how easy or difficult it is for new companies to enter the market. Consider barriers like start$-$up costs, regulations, and the strength of existing companies. The harder it is to enter the market, the less threat new competitors pose.

Bargaining Power of Suppliers: Suppliers provide the materials, products, or services that industry companies need to operate. This force examines how much control suppliers have over pricing and quality. The more powerful the supplier, the more influence they have over the industry.

Bargaining Power of Buyers: Buyers are the customers who purchase the industry's products or services. This force evaluates how much influence buyers have on pricing and terms. If buyers can easily switch to a competitor or if there are many alternatives, they have more bargaining power.

Threat of Substitutes: Substitutes are alternative products or services that meet the same need. This force looks at how easily consumers can find a different way to satisfy their needs. The more substitutes available, the greater the threat to the industry.

Intensity of Competitive Rivalry: This force examines how fierce the competition is among existing companies in the industry. If there are many competitors or the competition is aggressive, the rivalry is intense, which can impact profitability.

By analyzing these five forces, businesses can gain insights into the underlying drivers of competition within their industry and develop strategies to mitigate threats, capitalize on opportunities, and enhance their competitive position.