Porter's five forces model

Porter's five forces model is a simple business strategy development developed by Michael E. Porter of Harvard Business School in 1979. This strategy determines the competitive intensity and the attractiveness of the market. It is a powerful tool for understanding where the power lies in business. This is useful because you can know both your current competitive position and the strength of the position that you are looking to move into. So you can take advantage of the situation of strength, improve a situation a weakness, and avoid taking wrong steps. There are five important forces that determine the competitive power in a situation. These are:

(1) The threat of the entry of new competitors
(2) The bargaining power of suppliers
(3) The bargaining power of customers
(4) The threat of substitute products of services
(5) The rivalry among existing firms in the industry






So, let`s see...There are so many brands in the world. Enyone wants to survive, more than this he wants to dominate! Somebody cheats, somebody tries to be honor. Of course, our life like that)
I want to compare and contrast cars. Russian brand car with name "LADA" and german brand "BMW". So, lets` see what they have. Of course supplier power: BMW has a lot of promotions, like giving free audiosystem BOSE or smth else... But Russian cars do not have it.
What else... also BMW is cool and prestige brand for many years, so people trust this company and they try to buy this car, than to buy car from LADA with 10 years history only...
BMW is smart company. It already has a lot of money and trying to get more and more...For example few yaers ago BMW bough all british company "MINI". Before that MINI company was also great company, but when BMW bought it MINI becomes more better. It means BMW with it`s prestige showed that and MINI can becomes better when it`s under BMW. But if we will look for LADA, they have anything like this. That`s why it stops.
When there are a lot of companies in car industry, BMW tries to survive. This company is doing anything to "kill" others like few years ago BMW created the first jeep "X5"
I think it was bestseller! But LADA even do not have his own jeep, what is very sad for me...
As a conclusion, i wanna say that any company can becomes like dominating company...It needs just useful knowledge and time)


Thank you!)