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PORTER’S FIVE FORCES MODEL
WHAT IS THE MODEL ABOUT ,[object Object],    School professor, Michael Porter. ,[object Object],     profitability of an industry/ company.  ,[object Object],    dynamics between these forces, a company can     discover opportunities for improving upon your     strategies.
SIGNIFICANCE OF THE MODEL/ WHEN DO YOU USE THE MODEL ,[object Object],     position.  ,[object Object],      point or 'check-list' they might use.  ,[object Object],      services or businesses have the potential to be profitable ,[object Object]
   For Creating new strategies ,plans and investment     decision ,[object Object],[object Object]
competitor’s /industry  RIVALRY: ,[object Object]
You will find that your competitors may compete for market position using tactics such as;
price competition,
advertising,
increased customer service, or
through offering longer warrantee periods ,[object Object]
BARGAINING POWER OF THE BUYER’S: ,[object Object]
To analyze the Bargaining Power of your Customers you will need to review your industry by considering the following generic criteria :,[object Object]
BARGAINING POWER OF THE SUPPLIER’S ,[object Object]
 It is found  that as the bargaining power of suppliers increases the industry profitability tends to decrease.
To analyze the bargaining power of suppliers to one’s industry, one will need to consider the following factors :,[object Object]
Threat of substitutes ,[object Object]

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Porters Final 2