An industry study of the world seaborne steaming coal industry with particular reference to environmental and governmental influences and their impact on porter's five forces model.

Allard, Lambertus (1989) An industry study of the world seaborne steaming coal industry with particular reference to environmental and governmental influences and their impact on porter's five forces model. The University of Queensland:

Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
LAMBERTUS_ALLARD.pdf Full text application/pdf 5.56MB 1
Author Allard, Lambertus
Title of report An industry study of the world seaborne steaming coal industry with particular reference to environmental and governmental influences and their impact on porter's five forces model.
Formatted title


Publication date 1989
Place of publication The University of Queensland
Total pages 146
Language eng
Subjects 1503 Business and Management
Abstract/Summary The objectives of this research report were two-fold. The first was to establish the driving forces behind the world seaborne steaming coal industry. The second was to establish whether Porter's (1980) five forces model of the driving forces of' industry competition was sufficient to recognize all the current and potential forces in this industry or whether a more expanded model as suggested by Freeman (1983) in his stakeholders modification of Porter’s model gave us a better understanding of the industry. The major driving forces behind the industry are firstly substitutes. The industry was created because it became a viable substitute to oil. The numerous substitutes available will ensure that the price of coal on the world market will always remain under pressure. The second is buyer power. Suppliers to this industry are faced with large powerful buyers. The third is internal competition. The industry has equally sized but diverse competitors who will ensure internal competition will remain high. Producers in Queensland are faced with two powerful suppliers the Queensland government and the labour unions. Each has been able to extract high prices from the industry. Barriers to entry are high with the need to find an economic deposit and the capital cost creating the main barriers, what these barriers guarantee however is that whoever enters the industry will be a low cost producer. From this analysis it became obvious that the main strategy that producers should follow was that of cost leadership. Reputation is also very important in the industry and can ensure regular sales in times of over supply. It was concluded that the government as a stakeholder, could best be evaluated on economic terms within Porter's framework. It became more obvious, however, that when we examined the environmentalists and the issues became largely emotive Freemans expansion of Porters model was more appropriate. So by adding Freeman‘s stakeholders to Porter's model, the model took on an emotive and political characteristic it did not possess before.

Document type: Research Report
Collection: MBA reports
 
Citation counts: Google Scholar Search Google Scholar
Created: Sat, 08 Jan 2011, 12:29:19 EST by Mr Kevin Liang on behalf of The University of Queensland Library