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Porters forces


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Published in: Business, Design
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Porters forces

  2. 2. THE FIVE COMPETITIVE FORCES• New Entrants• Suppliers• Buyers• Substitutes• Industry Competitors
  3. 3. NEW ENTRANTS- Threat of New Entrants • Economies of Scale • Proprietary Product Differences • Brand Identity • Switching Costs • Capital Requirements • Access to Distribution • Absolute Cost Advantages
  4. 4. NEW ENTRANTS• Proprietary learning curve• Access to necessary inputs• Proprietary low-cost product design• Government policy• Expected retaliation
  5. 5. BARGAINING POWER OF SUPPLIERS• Differentiation of Inputs• Switching Costs of Supplier and Firms in the Industry• Presence of Substitute Inputs• Supplier Concentration• Importance of Volume to Supplier• Cost Related to Total Purchases in the Industry• Impact of Inputs on Cost or Differentiation• Threat of Forward Integration Related to Threat of Backward Integration by Firms in the Industry
  6. 6. BARGAINING POWER OF BUYERS• Buyer Concentration Versus Firm Concentration• Buyer Volume• Buyer Switching Costs As Relative to Firm Switching Costs• Buyer Information• Ability to Backward Integrate• Substitute Products• Pull Through
  7. 7. BARGAINING POWER OF BUYERS• Price/Total Purchases• Product Differences• Brand Identity• Impact on Quality/ Performance• Buyer Profits• Decision Maker’s Incentives
  8. 8. THREAT OF SUBSTITUTES• Relative Price Performance of Substitute• Switching Costs• Buyer Propensity to Substitute
  9. 9. INTENSITY OF RIVALRY• Industry Growth• Fixed(or Storage) Costs/ Value Added• Intermittent Over Capacity• Product Differences• Brand Identity• Switching Costs• Concentration and Balance Informational Complexity
  10. 10. INTENSITY OF RIVALRY• Diversity of Competitors• Corporate Stakes• Exit Barriers