The effectiveness of Porter's Model

The five forces on the effectiveness of Porter’s model are the followings:
The potential new entrant
The bargaining power of buyer
The bargaining power of suppliers
Threat of substitute products
The rivalry among competitors
The potential new entrant which is low attractive, in this model potential competitor are not presently competing in an industry but have the capability to do so. Power is also affected by the ability of people to enter your market. If it costs little in time or money to enter your market and compete effectively, if there are few economies of scale in place, or if you have little protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.
The bargaining power of buyer which is medium attractive, shows how it is easy for customers to switch from company to company. Here you ask yourself how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to your business, the cost to them of switching from your products and services to those of someone else, and so on. If you deal with few, powerful buyers, they are often able to dictate terms to you.
The Bargaining power of suppliers which is low attractive and his factors are resources that impact the industry. Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and the more you need suppliers' help, the more powerful your suppliers are.
The threat of substitute products which is medium attractive and in this model, the more the number of substitute and the more that consumer perceive them less as effective alternatives to their need satisfaction. This is affected by the ability of your customers to find a different way of doing what you do – for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it. If substitution is easy and substitution is viable, then this weakens your power.
The rivalry among competitors which is highly competitive, rivalry refers to the intensity of competition among existing firms. What is important here is the number and capability of your competitors – if you have many competitors, and they offer equally attractive products and services, then you’ll most likely have little power in the situation. If suppliers and buyers don’t get a good deal from you, they’ll go elsewhere. On the other hand, if no-one else can do what you do, then you can often have tremendous strength.

The industry I will be talking about, is the wireless industry: I choose the leader in the industry which is AT&T. The power and influence that AT&T has over competitors are the followings:
* Advanced GSM network
* Global System for Mobile Communications
* GPRS – General
* UMTS – EDGE – Enhanced Data rates for GSM Evolution
* 3G High speed data
The competitive advantage that AT&T has over competititors is the following:
* GSM services on cruise lines
* 61 million wireless customers
* Nation’s largest digital voice and data network
* $37.5 billion revenues
* $2.5 billion net income
* High speed Internet access on wireless handsets in the U.S. Global revenues grew to $640 billion in 2008
* Analysts forecast that the market will reach $570 billion by 2010

Housing Preservation and Development (HPD) mission's statement

A mission statement encompasses four main components; the task, vision, values and goals.
A company should not functions without following the guidelines of their mission statement. Because a company functioning without focusing on their mission statement has failed to achieve their objectives.

Mission Statement
Using a variety of preservation, development and enforcement strategies, HPD strives to improve the availability, affordability and quality of housing in New York City. As the nation's largest municipal housing agency, HPD works with private, public and community partners to strengthen neighborhoods and enable more New Yorkers to become homeowners or to rent well-maintained, affordable housing.

I believe that HPD mission's statement is an example of sounded mission statement because today, in great part due to the work of HPD, the vacant and boarded-up buildings that were once a blight on many of the City's neighborhoods have been transformed into safe, affordable homes for families. Once-abandoned lots now contain new townhouses, parks and gardens. Communities that were devastated not long ago are now vibrant, as commercial activity has returned and public safety initiatives have encouraged parents to allow their children to play outside. HPD's housing programs have helped to restore and rebuild housing as well as to improve the quality of life in New York City's richly diverse communities.