How does each of Porter’s five forces apply to Cisco?
Porter’s Five Forces are supplier power, threat of substitutes, buyer power, the degree of rivalry amongst competitors, and barriers to entry. By creating the Manufacturing Connection Online, Cisco has been able to create a successful link with all of its suppliers, controlling differing inputs, ordering volumes, and supplier concentrations. With Cisco Connection Online, Cisco has successfully created a supplier gateway. The benefits include ease-of-use, shorter delivery times, and immediate access to order status. By improving their delivery system whilst reducing the price to the consumer and shortening delivery time, Cisco suppliers have raised the barriers to entry, ensuring brand identity, access to distribution, and providing absolute cost advantages. Similarly, the threat of substitution is reduced, as customers are now disinclined to substitute, particularly in face of the increased customer service. Finally, being a leader in the industry and the value-added CRM services will
