porters five forces

1. It is designed to explain the relationship
between the five dynamic forces that affect
an industry’s performance; these are the:
• intensity of competitive rivalry
• threat from new entrants
• threat from substitutes
• bargaining power of buyers
• bargaining power of suppliers
and looks like this…….

3. What Determines Rivalry?
• Projected industry growth (fight for market share)
• Fixed costs expectations (projected on forecasts)
• Brand identity
• Numerous competitors with equal power and
resources
• Lack of differentiation

4. What Determines Threat of Entry?
• Economy of scale
• Brand identities, marketability
• Capital requirements (raw materials, technology)
• Access to distribution
• Absolute cost advantages
• Government policies, legislation

5. What Determines Supplier
Power?
• Supplier concentration, density
• Switching costs, effort
• Forward integration threats
• Presence of substitute inputs
(plus projected)
• Importance of volume to suppliers

6. What would the supply Chain
look like for….

8. What Determines The Threat of Substitution?
• Buyer tendancy to substitute
• Relative price of substitutes
• Switching costs, other barriers

9. What Determines Buyer Power?
• Buyer concentration
• Buyer volume
• Substitute products
• Price sensitivity
(incl. perceived price value)
• Low profits

10. What Determines Buyer Power?
• Buyer concentration
• Buyer volume
• Substitute products
• Price sensitivity
(incl. perceived price value)
• Low profits