However, for most consultants, the framework is only a starting point. They might use value chain or another type of analysis in conjunction. According to Porter, the five forces framework should be used at the line-of-business industry level; it is not designed to be used at the industry group or industry sector level. An industry is defined at a lower, more basic level:
Changes in the macro-environment factors can have a direct impact on not only the Xerox Corporation but also can impact other players in the Information Technology Services.
The macro-environment factors can impact the Porter Five Forces that shape strategy and competitive landscape. Article continues after ad PESTEL analysis provides great detail about operating challenges Xerox Corporation will face in prevalent macro environment other than competitive forces.
For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for Xerox Corporation if it is situated in unstable political environment. Spanish oil giant Repsol had to face a similar instance.
It started an above average profitability operations in Argentina and made strong returns in years. But the business was later expropriated by the Left Wing government. Xerox Corporation is operating in Information Technology Services in more than dozen countries and expose itself to different types of political environment and political system risks.
The achieve success in such a dynamic Information Technology Services industry across various countries is to diversify the systematic risks of political environment.
Xerox Corporation can closely analyze the following factors before entering or investing in a certain market- Political stability and importance of Information Technology Services sector in the country's economy.
Risk of military invasion Level of corruption - especially levels of regulation in Technology sector. Bureaucracy and interference in Information Technology Services industry by government.
Product labeling and other requirements in Information Technology Services Economic Factors that Impact Xerox Corporation The Macro environment factors such as — inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy.
While micro environment factors such as competition norms impact the competitive advantage of the firm. Economic factors that Xerox Corporation should consider while conducting PESTEL analysis are - Type of economic system in countries of operation — what type of economic system there is and how stable it is.
Efficiency of financial markets — Does Xerox Corporation needs to raise capital in local market? Infrastructure quality in Information Technology Services industry Comparative advantages of host country and Technology sector in the particular country.
Skill level of workforce in Information Technology Services industry.
Education level in the economy Labor costs and productivity in the economy Business cycle stage e.Porter’s five forces model is an analysis tool that uses five industry forces to determine the intensity of competition in an industry and its profitability level. . WikiWealth's Five Forces analysis evaluates the five factors that determine industry competition.
Add your input to xerox's five forces template. Add your input to xerox's five forces template. See WikiWealth's tutorial for help. Porter S Five Forces Analysis For Xerox Porter five forces analysis From Wikipedia, the free encyclopedia A graphical representation of Porter's Five Forces Porter five forces analysis is a framework for industry analysis and business strategy development.
Porter's Five Forces Framework is a tool for analyzing competition of a business. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack of it) of an industry in terms of its .
Xerox is a public corporation founded as a document processing company which markets, services and supports a large range of products globally to make the office environment more efficient and productive. Xerox Corporation Porter Five Forces Analysis Strategic Management Essays, Term Papers & Presentations Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry.