PORTER'S FIVE FORCES ANALYSIS

Porter's Five Forces Analysis

Porter's Five Forces Analysis

Introduction

In any business organization, the strategy is a major source of strength and power of the organization in terms of combating the effective mobilization of tangible or intangible products. In an era of globalization, technology, knowledge and strategies needed to create competitive advantage and sustainable development. In this line of discussion, let us focus on one of the elements necessary for a competitive advantage and sustainable development - a strategy.

Various strategies have been made to solve problems in business organization. It ranges from human resources, manufacturing, marketing, etc. Each of these aspects is appropriate strategies that can be used. In this report, I would like to use Michael Porter's five forces strategy, as my tool for analyzing the competitive state NOV.com. In this study, data analysis was based solely on the annual report NOV.Com collected in 1999-2003 and the case study conducted by Christensen and Associates in 2001.

NOV.com is secured portion of National Oilwell Varco's external website, where registered users can gain access to technical information or access to a number of useful tools and the production of specific applications.

Gaining Power of Suppliers

One of Porter's five forces are formulated for the organization to look into

Although there are many companies in the world, most of the oil and gas business is dominated by a handful of large companies. Large amounts of capital investment, usually weed out the many vendors of platforms, pipelines, refining, etc. There is not a lot of fierce competition between them, but they have significant power over the lower drilling and support companies. In order to create a competitive advantage, gaining suppliers.

Global reach and diverse portfolio of assets to attract many investors. NOV.Com and other major rivals and is seen by investors as energy companies that have a significant positive strong investment. Most often the comparison is always with Letourneau, TSC Offshore Group of American and block manufacturing company. Although, NOV.Com regarded by many as at par with its competitors, but what is lacking in their management of "lack of perceived differentiation," which somehow impaired investment decision-making process. Moreover, although NOV.Com too, "there is no strategy that is unique or differentiating with respect to other companies, the threat of market power of suppliers low by partnering, supply chain management, training and dependence.

This is best described in the comments made by its investors, suppliers and buyers, in the case study Christensen and Associates (2001), NOV.Com in the "main force of extremely high quality asset base of talented technical staff, strong management and strong" balance, and its global spread of assets, financial strength, its people, and the depth and breadth of their operational skills, highly contributed to reducing the threat of government negotiations suppliers.

Buyers and industrial users and individual consumers. Industrial (ie, downstream) buyer power is low because up suppliers an incentive to restrict supply and keep prices high as evidenced by the reduction of downward edges. Individual buyer power is low due to the large volume of ...