<p style="text-align: justify;">Fosun International Limited is a Chinese multinational conglomerate holding company. The company was founded in 1992 in China. Fosun International Limited is an innovation-driven consumer group listed on the Hong Kong Stock Exchange (00656.HK) since 2007 (Fosun, 2021). Fosun International ranks No.459 on the 2021 Forbes Global 2000 Fosun has a wide array of business activities, including investing in other firms, managing several private equity funds, and entering joint ventures. The Group portfolio consists of Asset management, Banks, Fashion, Real Estate, Insurance companies, and Industrial Companies. Its major companies are China Financial Services Holdings, Fosun Pharmaceutical, Fosun Finance, and Shanghai Forte Land Porter’s five forces model. It is a valuable tool to identify threats and opportunities Fosun International faces in the business world.</p>
<h2 style="text-align: justify;">Competitive Rivalry in The Market</h2>
<p style="text-align: justify;">Fosun International is one the largest conglomerate in the world. It is one of the renowned civilian-owned companies in China. It has diversified companies under its portfolio. However, it faces competition with the local and international companies. Those companies include China Poly Group, Wanda Group, and Legend Holdings. Chinese local holding companies have diversified portfolios with a focus on technology, pharmaceutical, and real estate. China Poly Group and Wanda group posted annual revenue of $57.14 B (Fortune, 2021) and 39 billion Yuan (Statista, 2021), respectively, in 2020. Fosun International has published an annual revenue of $19.79 Billion with a gross profit of $7.32 B in the last fiscal year (Nikkei Asia, 2021). The competitive rivalry is high due to the presence of multinational companies in the region.</p>
<h2 style="text-align: justify;">Threat of Substitutes</h2>
<p style="text-align: justify;">Fosun International is a holding company that makes long-term investments focused on global companies in diversified sectors. Fosun Pharma; The major company under Fosun International is well established and leading pharmaceutical company. Its associate company Sinopharm is a specialized pharmaceutical company that was one of the first companies to develop the Vaccine for Covid-19. Hive city is an overall city-industry integration solution managed by Fosun to support urban development (Fosun, 2021). The objective is to provide a more practical city-industry integration solution, providing high-quality products and services. Fuson International also owns Wolverhampton Wanderers F.C. It is an established and profitable football club in the UK. Fosun&#8217;s portfolio companies are well established and positioned perfectly in the business world. Therefore, the threat of substation is low.</p>
<h2 style="text-align: justify;">The Threat of New Entrants</h2>
<p style="text-align: justify;">Fosun International has a diversified portfolio. Financial institutes, the Manufacturing industry, and real estate are one of its major sectors. The main barriers to entry in any industry are capital requirements, product differentiation, regulatory requirements, and economies of scale (Grant, 2010). The threat of new entrants in all of these industries is reasonably low, primarily due to the industry&#8217;s high entry and exit barriers. These barriers often dissuade new entrants from entering the industry because of the high expansion costs and the associated risks. The new entrant must compete with the well-established industry runner and offer better products. Startups can&#8217;t compete with industry leaders. Considering the higher financial cost and regulatory hurdle, the threat of new entrants is low.</p>
<h2 style="text-align: justify;">Bargaining Power of Buyers</h2>
<p style="text-align: justify;">Buyers&#8217; bargaining power is directly proportional to these factors the state of competition in the market, switching cost, and availability of better alternatives. The financial services sector is highly competitive, and major players are operating in the segment. The individual buyers are individual end-users of the product, whereas companies are the retailer or wholesalers (Hill &; Jones, 2012). The individual buyer has a limited purchase cap, and it makes them weaker. On the other hand, corporate clients and government institutes can claim better deals. This is because they purchase the product in bulk and companies provide a long-term contract. Similarly, the real estate and pharmaceutical sectors are competitive, and quality is the deciding factor for the buyers. In this case, buyers’ power depends on their purchasing capacity, but overall power is low.</p>
<h2 style="text-align: justify;">Bargaining Power of Suppliers</h2>
<p style="text-align: justify;">Suppliers&#8217; bargaining power depends upon the availability of the buyer and the quality of its product. The suppliers&#8217; industry is more concentrated than the industry to which it sells, and no readily available substitutes are available (Oregon State, 2021). Suppliers in the financial industry are mainly of two types. The agent and brokerage firms that bring human capital and corporate clients to the insurance company. The other one is the lending institutes which provide funds in case of payment. Suppliers can reduce the industry&#8217;s profitability by raising prices or reducing the quality of the products and services (Magoutas. 2017) The suppliers in the manufacturing industry are raw material suppliers and equipment suppliers. Skilled labor is another essential supply because the quality and efficiency of the product depend on it; however, they hold higher bargaining power as they are vital to business. Overall, suppliers have moderate bargaining power.</p>
<h3 style="text-align: justify;">References</h3>
<p style="text-align: left;">Fortune. (2021) China Poly Group. Available at: https://fortune.com/company/china-poly-group/global500/<br />
Fosun. (2021) About us. Available at: https://en.fosun.com/about/<br />
Fosun. (2021) Hive City. Available at: https://en.fosun.com/ecology/beehive.html<br />
Grant, R. M. (2010). Contemporary Strategy Analysis. 7th Edition.<br />
Hill, C. W., &; Jones, G. R. (2012). Essentials of strategic management. Cengage Learning.<br />
Maguotas, A. et al, (2017). Strategic competition analysis and group mapping: The case of the Greek insurance industry. Available at: https://www.researchgate.net/publication/320704251_Strategic_competition_analysis_and_group_mapping_The_case_of_the_Greek_insurance_industry#pf12<br />
Nikkei Asia. (2021) Fosun International Ltd. Available at: https://asia.nikkei.com/Companies/Fosun-International-Ltd<br />
Oregon State (2021) Analyzing the Organization’s Microenvironment. Available at: https://open.oregonstate.education/strategicmanagement/chapter/3-analyzing-the-organizations-microenvironment/<br />
Statista. (2021) Annual revenue of Dalian Wanda Commercial Management Group Co., Ltd. from 2014 to 2020. Available at: https://www.statista.com/statistics/1177733/china-revenue-of-dalian-wanda-group/</p>