How WSJ article relate to Porter's Five Force Model - Assignment Example

WSJ and Porter Five Forces Model Article ‘Red Alert on Russia Is Premature’ by Richard BarleyWall Street JournalA- Despite of falling by 7% against the U.S. dollar in 2013, Russia has not completely vanished from the emerging markets and the red alert on the country is still uncertain (Barley). This paper aims to discuss the aforementioned article from WSJ by relating it with Porter five forces model. B- Analyzing the situation in the article ‘Red Alert on Russia Is Premature’ in terms of Porter five forces.

1- The Industry: Russia is a huge country and has puzzled the investors for this reason and for its confusing history. Russia still has the world’s largest gas reserves and the country is said to share 21% of the total unexplored oil reserves. The country reserves are solid at $497 billion. The GDP is still in a surplus and the country greatly relies on its oil and gas revenues. Russia needs to focus on substitute products in order to save the value of its currency (Barley). 2- Competitors: According to the article, the major competition is between is Ruble and the U.S. dollar.

History shows that the rubble lost 70% of its value in 1998 against U.S. dollar while in 2008-09 it lost 55%. Since, the value of the US $ greatly relies on international oil and gas prices therefore, Russia still have the power to compete for its currency value against US Dollar (Barley). 3- Supplier: the Russian Oil and Gas industry, which is one the strongest in the world (Barley).4- Buyer: Russia and the International market. However, the international market is a chief buyer and has strong power to influence the economy and the value of its currency (Barley).

5- Threats: As per the article, a chief threat to the ruble possibly lies in the demand by the Russians for foreign currency (Barley).Work CitedBarley, Richard. Red Alert on Russia Is Premature. 2 February 2014. Web 6 February 2014 .