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1) COMPETITIVE RIVALRY WITHIN THE
INDUSTRY
 this force is the determinants of how
much the industry is profitable.
 RIVALRY AMONG COMPETITION IS
INTENSE WHEN:
a) When there are many competitors.
b) When exit barriers are high
c) Many subsitutes are available
d) loyal customers
2) BARGAININGPOWEROF SUPPLIER:
 STRONG BARGAINING POWER
ALLOWS SUPPLIER TO SELL HIGH
PRISED OR LOW PRICES RAW
MATERIAL TO THE BUYERS
 BARGAINIG POWER OF SUPPLIER IS
HIGH WHEN:
a) There are few number of supplier
b) Few substitute of raw material are
available.
c) Cost of switching are very high.
BARGAINING
POWER OF
SUPPLIER OF
TOYOTA IS WEAK
BECAUSE IT HAS
DIFFERENT
SUPPLIERS FOR
DIFFERENT PART
(FOR METAL
,LEATHER,PLASTIC
,COMPUTERS
,COOLING SYSTEM
,RAW MATERIAL
ETC).
3)BARGAINING POWER OF BUYER:
 CUSTOMER HAS THE POWER TO
DEMAND LOWER PRICE AND HIGHER
PRICE PRODUCT WHEN THEIR
BARGAINIG POWER IS HIGH.
CUSTOMER HAS STRONG
BARGAINING POWER WHEN:
a) Few customer exist
b) Many substitute is available.
c) Switching cost is low.
WHEN
TALKING
ABOUT
ANTISEPTIC
LIQUID
BUYERS
HAS ONLY
LIMITED
OPTIONS.
4)THREATS OF NEW ENTRANTS:
THIS FORCE DETERMINES HOW EASY IS
TO ENTER IN THE PARTICULAR MARKET.
IT IS ESSENTIAL FOR EXISTING
INDUSTRY TO CREATE HIGH BARRIER
FOR NEW ENTRANTS
THREATS OF NEW ENTRANTS IS HIGH
WHEN:
a) Low capital required to enter in the
market
b) No government regulation
c) Low customer loyalty
1) JIO HAS
GROWN AT A
SCORCHING PACE
2) JIO HURTS THE
BALANCE
SHEETS OF
OTHER TELECOM
COMPANIES(VOD
AFONE,IDEA
MERGES,AND
AIRTEL FACED
4.9% DECLINE IN
ITS PROFIT)
5) THREATS OF SUBSTITUTE:
FORCES ARE THREATNING WHEN
BUYER CAN EASILY FIND SUBSTITUTE
PRODUCT WITH BETTER PRICE AND
QUALITY.
THREATS OF SUBSTITUTE IS HIGH
WHEN:
a) Switching cost is low
b) Substitute product is cheaper with
better quality
1) IN CASE OF
REGIONAL
AIRLINES ,THERE IS
ALWAYS AN OPTION
OF TAKING THE
CAR,BUS, TRAIN.
2) IN CASE OF
INTERNATIONAL
AIRLINE ,THE
THREAT OF
SUBSITUTES IS
ALMOST NON…
CONCLUSION:
In conclusion, Porter’s Five Forces have huge
impact of an industry because it can stack out
position of a firm in an industry and able to let
the firm know their strength and weakness in
order to retaining customer.
Therefore, the companies should clarify the five
industry forces to have a better understanding
in order to begin develop its strategic use for
business.
PORTER'S FIVE FORCES

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PORTER'S FIVE FORCES

  • 1.
  • 2.
  • 3.
  • 4.
  • 5. 1) COMPETITIVE RIVALRY WITHIN THE INDUSTRY  this force is the determinants of how much the industry is profitable.  RIVALRY AMONG COMPETITION IS INTENSE WHEN: a) When there are many competitors. b) When exit barriers are high c) Many subsitutes are available d) loyal customers
  • 6.
  • 7. 2) BARGAININGPOWEROF SUPPLIER:  STRONG BARGAINING POWER ALLOWS SUPPLIER TO SELL HIGH PRISED OR LOW PRICES RAW MATERIAL TO THE BUYERS  BARGAINIG POWER OF SUPPLIER IS HIGH WHEN: a) There are few number of supplier b) Few substitute of raw material are available. c) Cost of switching are very high.
  • 8. BARGAINING POWER OF SUPPLIER OF TOYOTA IS WEAK BECAUSE IT HAS DIFFERENT SUPPLIERS FOR DIFFERENT PART (FOR METAL ,LEATHER,PLASTIC ,COMPUTERS ,COOLING SYSTEM ,RAW MATERIAL ETC).
  • 9. 3)BARGAINING POWER OF BUYER:  CUSTOMER HAS THE POWER TO DEMAND LOWER PRICE AND HIGHER PRICE PRODUCT WHEN THEIR BARGAINIG POWER IS HIGH. CUSTOMER HAS STRONG BARGAINING POWER WHEN: a) Few customer exist b) Many substitute is available. c) Switching cost is low.
  • 11. 4)THREATS OF NEW ENTRANTS: THIS FORCE DETERMINES HOW EASY IS TO ENTER IN THE PARTICULAR MARKET. IT IS ESSENTIAL FOR EXISTING INDUSTRY TO CREATE HIGH BARRIER FOR NEW ENTRANTS THREATS OF NEW ENTRANTS IS HIGH WHEN: a) Low capital required to enter in the market b) No government regulation c) Low customer loyalty
  • 12. 1) JIO HAS GROWN AT A SCORCHING PACE 2) JIO HURTS THE BALANCE SHEETS OF OTHER TELECOM COMPANIES(VOD AFONE,IDEA MERGES,AND AIRTEL FACED 4.9% DECLINE IN ITS PROFIT)
  • 13. 5) THREATS OF SUBSTITUTE: FORCES ARE THREATNING WHEN BUYER CAN EASILY FIND SUBSTITUTE PRODUCT WITH BETTER PRICE AND QUALITY. THREATS OF SUBSTITUTE IS HIGH WHEN: a) Switching cost is low b) Substitute product is cheaper with better quality
  • 14. 1) IN CASE OF REGIONAL AIRLINES ,THERE IS ALWAYS AN OPTION OF TAKING THE CAR,BUS, TRAIN. 2) IN CASE OF INTERNATIONAL AIRLINE ,THE THREAT OF SUBSITUTES IS ALMOST NON…
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. CONCLUSION: In conclusion, Porter’s Five Forces have huge impact of an industry because it can stack out position of a firm in an industry and able to let the firm know their strength and weakness in order to retaining customer. Therefore, the companies should clarify the five industry forces to have a better understanding in order to begin develop its strategic use for business.