Analysis Of Porters Five Forces Model: Argumentative Essay Assessment 1 Answer

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Question :

Assessment 1 Outline

Assessment title: Assignment 1
Assessment weighting: 20%
Assessment type: Argumentative Essay
Word limit: 1500 Equivalent
Assessment instruction
Develop an argumentative essay on a selected topic, choosing one (1) of the topics outlined below:
Topic 1
  • Critically analyse the application of the Porters Five Forces Model in the Hospitality Industry.
Topic 2
  • Critically analyse the application of Porters Value Chain analysis in the Hospitality Industry.
Topic 3
  • Critically analyse and evaluate the sources of competitive advantage in the Hospitality Industry.
Assessment format
This is an individual assignment using an Argumentative Essay style format.
  • Introduction to include background information on the topic, statement of your position on the topic (thesis), overview of arguments to be presented.
  • Body to include argument 1 – evidence/explanation for argument 1, conclusion argument 1 and link to next argument 2 - evidence/explanation for argument 2, conclusion argument 2 and follow this structure for as many arguments as you wish to put forward.
  • Conclusion to include the summary of the main points of the body and restatement of your
position (thesis).
Word count inclusion? Y/N
Lecturer comment
Title Page

Executive Summary

Table of Contents




Reference List


Specific line spacing

Specific margins

Min/max references
Minimum of 10 independent references
Calibre of references
You are required to use a minimum of 10 independent references from peer

reviewed journals and texts published in
the last 5-10 years.
Template in use

Font Size
11-point font size requested

Submission details:
Electronic copies of the assignment must be submitted to the ‘Turn-It-In’ website by 23.59 on the
due date. Do not ‘E-mail’ assignments, as they will not be accepted in this subject.
Graduate qualities being assessed:
GQ1 The acquisition of a systematic, coherent and in-depth body of knowledge relating to the hospitality industry, the underlying principles and concepts, and associated industry communication and professional skills.

GQ2 An appreciation of the social, cultural and environmental contexts of the hospitality industry, its operations and development and of the issues of significance to both the industry and wider community, including sustainability.

GQ4 The ability to research, evaluate & use information & ideas from a broad range of sources to effectively identify, formulate & solve problems, to generate ideas & demonstrate a capacity for initiative, judgement, innovation & entrepreneurial thinking.

Threshold Learning Outcomes being assessed:
Professional Responsibility
Service & Experience Design
Inter- disciplinary Inquiry

Problem Solving
Assessment 1


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Answer :


Topic 1: Critically analyse the application of the Porters Five Forces Model in the Hospitality


The chosen topic is the application of Porters Five Forces Model in the hospitality industry. Porters five forces model deals with the identification of intensity of competition and attractiveness of the market. This is one of the major models that is applied to analyse the macro environment for a particular company or industry. The industry that will be analysed for this paper is the hospitality industry. There are mainly five forces which are analysed that are a threat from the new entrants, rivalry in the industry, bargaining power of customers, bargaining power of suppliers and threat of substitutes. 

The analysis will be made for the usefulness of the Porters Five Forces model for the hospitality industry in which every force will be analysed precisely. Principles, concepts, professional and communication skills related to the industry will also be analysed. Making the analysis of social, environmental and cultural aspects of the hospitality industry along with issues like sustainability will also be the part of the discussion.

Critical analysis and application of Porters Five Forces Model in the Hospitality Industry

As per Arifand Hossin (2016), the hospitality industry requires a prominent organisation of the resources where it is human or capital resources. They both play an important role and acts as a key success factor for the industry. It follows certain principles like courteous, friendly and welcoming along with efficient, well-timed, instils trust, infuse expectations, consistent, flexible and need to be knowledgeable while dealing with guests. According to Bowie et al. (2016), the concept of the hospitality industry is broad within the service industry that summarises food, lodging, event planning, drink service, transportation, theme parks, travelling, cruise line and additional fields of the tourism industry. All these requirements in a company under the hospitality industry makes it efficient and worthy for the application of the porters five forces model. Further, the industry needs many kinds of professional and communication skills that are crucial for the industry.  

According to Alexakis and Jiang(2019), the professional skills required for the hotel managers are multi-tasking, language skills, teamwork skills, cultural awareness work ethic which leads to making the firms in the industry to become a major player in the market. As for example, taking the communication skills into consideration, it one of the greatest tools for the personnel to grab the attention of the guests along with the physical appearance of the personnel. The personnel need to possess language skills which are specified to the local or the international language that could help to make the first impression on the guests. Stringam and Gerdes (2017) contrast that there is a trend of electronic and computerised communication where there is an efficiency communicate with multiple customers in their languages. The pressure on the personnel has been reduced and the front office is more engaged with other services of hospitality management. Thus, it could be said that the hospitality industry is a broader concept and deals with many principles or management guidelines.

The first force of Porter's model includes the threat from new entrants and these new entrants need to be up to date with principles, professional and communication skills to compete in the industry. As opined by Arifand Hossin(2016), it is one of the greatest requirements for the newcomers in the industry to compete with the existing ones. New hotels could have excellent guest service in terms of rooms, price food and another advantage that could divert the customers. Implementing the ethical principles including ethical marketing and code of ethics to enter into the hospitality sector and further establish the required several professional skills for the personnel. They help the hotel to operate with their proposed strategy. Further global distribution and promotion of customer care service could be an important factor to enter into the industry by influencing the perceptions of the customers. The other advantage of this force for the industry is that it helps to analyse the new entrants and the existing firms could adjust their strategy according to them.Satalkar(2017) argued that the global distribution system is the future of communication in the hospitality industry which could be used by new entrants and provide stiff competition to the existing ones. It could be said that the application of this force to understand the hospitality industry could be significant but there are new entrants who also knees the potential to provide a threat to existing ones in the market.

Another force is rivalry in the market or industry which is the ultimate result of a number of firms entering into the industry. Oteng(2018) stated that high level of competitiveness drives existing companies to come with a new or differentiated strategy like automation, increasing room service, pick up and drop facility and many mote other strategies that could affect the existing ones. Moreover, the existing hotels also compete with each other on the basis of imitating the strategies of one another. The existing hotels need to work on improving their brand image in the market by improving customer services like a warm cookie while entering, promising lees and delivering more to the guest which could influence the perception of the customers and create brand loyalty. This loyalty could be enabling the hotels to sustain in the competitive environment. Here, executives and hotel managers are the key individuals who look after formulating strategies for the hotels to remain competitive. Rivals compete with each other with the existing resources in which human resource has a major role. In this context, the work environment acts as a mediator between procrastination and perceived performance which makes a firm better than another firm. Wang et al. (2016) argued that the external environment like technology up-gradation also affects the hotels and affects the firm’s capacity which provides its power to compete with the rivals. Therefore, rivals in the hospitality industry could affect each other strategy and power to deal with customers. 

Bargaining power of the customers comes with the potential of the firms to meet their expectations.  Neirotti et al. (2016), emphasise that in case if a rival is more competent to meet their requirement, customers will start bargaining which is not fruitful for the firms. Moreover, customers are also affected by social and cultural factors which influence them to choose any firm or not for their want fulfilment. As for example, as per Bavik (2016), social factors like education, income, newspaper index, TV index influences the customers. Hotel managers also market their hotel services by sharing their information on social media platforms and established media like TV, newspaper as a major tool. Cultural background like norms, beliefs values also influences the customer to bargain in the market. They match their wants with the firms and chooses one which best fulfils their expectation. Existing of many firms let them bargain which is the result of rival's presence in the industry. In this regard, Minor (2017) argued that prominent hotels do not entertain this power of customers as they know that the customers will be attracted if they could be able to meet with their needs and demands by providing excellent food quality and maintaining hygiene in the rooms. Thus, this force helps to know the bargaining power of the customers with respect to existing firms formulating future plans based on this aspect. 

Threat of substitutes is impacted by the customers bargaining power in the industry. As opined by Gheribi (2018), more availability of substitutes leaves the customers to bargain about the price or service and a threat to firms that their customers could move to other rivals. This could be dealt with better positioning and customer loyalty in the hospitality industry. Firms need to involve in continuous innovation with the application of entrepreneurial thinking that what are the substitutes and how they can deal with that to reduce the bargaining power. Furthermore, continuous innovation with entrepreneurial thinking of the hotel managers for taking bookings, competencies in-room service, capacity to take initiative for front office management and entrepreneurial thinking could save the firms from this threat. Buhalis et al. (2019) mentioned that entrepreneurial thinking provides the opportunity to see things differently than the rest of the competitors and building a major strategy. It is a state of mind that open the kind to lean new opportunities from the existing market. Thus, the threat of substitute acts as both boon and curse for the firms in the hospitality industry and the firms could take advantage from this analysis for what needs to be done or what needs to be avoided.

Suppliers bargaining power comes with demand in the industry where the hotels need the resources by which they could imitate the rival’s strategies. As opined by Veersma et al. (2017), this is mainly the strategy to provide competition with the help of launching a similar product that could attract prospective customers. Suppliers also play their part and commence bargaining when they found that there are many firms that are in need of similar resources. As for example, as per Karyopouli (2016), B2B exchanges are mainly formulated in the industry where firms engage in negotiations to exchange the resources to achieve their target. These are in terms of outsourcing the hotel staffs from other companies, hotel maintenance by other companies like wholesale food vendors. Some hotels also provide the facility to book their rooms from the third parties. Another aspect is that firms also need to maintain sustainability in the supply chain. In this regard, Hanna and Adams (2019) argued that sustainable development is the major issue in the industry in which the firms in the hospitality industry have to maintain social and cultural beliefs, heritage conservation. Thus, the supplier has also the potential to affect the industry and applying this as a part of analysis could help to propose a better strategy for the company. 


Thus, it could be said that the application of the Porters five forces model could help to build greater strategies in the hospitality industry. It helps to provide all the competitive forces and market attractiveness that helps to survive for the hotels in the market. Further, the model also revealed innovation could help to beat the competition and socio-culture sustainability is another beneficial aspect of the hospitality industry. Porter’s five forces model is an effective tool to know the competition and market attractiveness. There is a massive amount of information gathered from this model to propose or make a strategy.