5. IMPLEMENTATION OF THE PORTER MODEL AT XARA INC. The challenges that Xara Inc. faced before using the Porter model are summarized below: • The financial crisis in the United States had an excessive impact on the business growth of Xara Inc., especially after the crisis Global Economic Outlook of 2008. • Title Insurance was a major vertical for Xara Inc. However, the title insurance industry was negatively impacted in the United States. Existing customers faced many challenges and some of them filed for bankruptcy. Therefore, growing the business of an existing client was abstruse. • Staffing was a major issue due to volume fluctuations and customers not meeting any minimum order commitments. • 50% of Xara Inc.'s revenue came from a major banking client. This was a high-risk situation as there was an over-reliance on a single client. Additionally, the banking industry was in the doldrums.• Rising employee and infrastructure costs were eating up profitability.• Employee retention.• The company was offering a “me too” service without strong differentiators.• It did not There was no smoothness for customers.• Existing competitors were deeply embedded in customer businesses and new competitors were emerging quickly because barriers to entry were low. • Acquiring other banking customers was difficult due to the current equity ownership structure. • There were regulatory concerns regarding outsourcing. • Feelings of nationalism.Xara Inc. preferred to opt for Porter model to deal with the increasing competition in the industry and other problems and challenges faced by the company. They analyzed the five forces and built a draft implementation model. The summary of the five competitive forces analysis is mentioned below: 5.1. Threat of new entrants ... middle of paper ... but the main suppliers are in India, the Philippines and China. In India, they are located in the cities of Bangalore, Chennai and Pune. Due to excess capacity in the industry, suppliers are always ready to lower prices to maintain or embellish their share.  Extensive exit barriers: No. Exit barriers are not extensive. If a company is not making a profit, it can easily go out of business by laying off its employees and abandoning its offices and infrastructure. However, this could result in a loss of reputation. There is also an alternative of selling the company to a competitor. Intense Rivalry: YesThere is intense rivalry due to lack of differentiation, excess capacity and slow growth in the industry. Once the quality threshold is reached, price becomes a major differentiator. This leads to zero-sum competition and, therefore, lowers the profitability of the industry..