Michael e


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Michael E. Porter's Five force Model

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Michael e

  1. 1. Michael Porter’s 5 Force Model<br />
  2. 2. Five Force Model<br />
  3. 3. Threat Of New Entrants<br />Brings new capacity and a desire to gain market share that puts pressure on prices,costs….<br />Barriers to entry:<br />Supply side economies of scale<br />Demand side benefits of scale<br />Customer Switching costs<br />Capital requirements<br />Unequal access to distribution channels<br />
  4. 4. Bargaining Power of SuppliersandBargaining Power of Buyers<br />
  5. 5. Rivalry among existing Competitors<br />Sustainable competitive advantage through innovation.<br />Level of advertising expense<br />Powerful competitive strategy<br />The visibility of proprietary items on the Web used by a company which can intensify competitive pressures on their rivals.<br />
  6. 6. Threat of Substitute Products<br />Attractive Price Performance trade off to the industry’s products … (Telephone to skype)<br />The buyer’s cost of switching to the substitute is low…<br />
  7. 7. Conclusion……<br />When making a qualitative evaluation of a firm's strategic position<br />Should be used at the line-of-business industry level.<br />Corporate strategy is the selection of industries (lines of business) in which the company should compete.<br /> Each line of business should develop its own, industry-specific, five forces analysis<br />
  8. 8. Presented By-<br />Invogue<br />PallaviKhanna<br />Isha Singh<br />Dinesh Singh<br />MayankMaindola<br />