Question: Solve this Q using porters five forces models Question No 3 Porters Five Forces Model is a way of viewing competitive advantage for an organisation

Solve this Q using porters five forces models
Solve this Q using porters five forces models
Question No 3 Porters Five Forces Model is a way of viewing competitive advantage for an organisation or business Your friend is a Petromin gas station owner on the main highway between Madinah and Mekkah. The petrol station offers standard refuelling pumps for petrol and diesel manned wholly by expatriate labourers. He has a tyre repair shop, workshop for car servicing and doing minor repairs, a car wash, a small sundry shop and a small sandwich and coffee bar. The facilities are more than 25 years old and will need replacing soon. Although the volume of traffic using this highway is high, he tells you that his business is facing a lot of issues. He has given a list of major challenges facing his company No 1 2 3 4 Challenges Rising level of competition from newer petrol stations with better faciities Rising Costs of Operations Profit s aiready small and shrinking due to low profit margins selling petrol Dependency on Expatriate Workers- They will be phased out soon_Replacing them will pose problems Customers value low prices more than anything Demand for petrol expected to decline as Electric Hybrid Vehicles are introduced The Haramain High Speed Train will prove popular with travellers and further reduce vehicle traffic Petroleum Supplier impose minimum sales quotas as targets- difficult to meet lo 5 6 7 8 The owner is worried and he wants to know whether he should continue in the business or sell it while he can. He has asked you to analyse his business Construct a Porters Five Forces Model itemising all the forces that will affect the petrol station business up to 2030 when renewable energy is expected to play a big part. For each of the five forces, itemise what are the possible forces that will impact his business. The table above contains some of these. Evaluate what you think are two very important issues facing this station. Based on this suggest the best stres that he should take

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