FINANCIAL BLISS PORTERS FIVE FORCES AND PORTERS VALUE

FINANCIAL BLISS PORTER’S FIVE FORCES AND PORTER’S VALUE CHAIN ENT 610 -50 ENTREPRENEURIAL CREATION BY: KIMILLER

PORTER’S FIVE FORCES

COMPETITION RIVALRY • Size of firms • Number of firms • Decent amount of competition • Customer loyalty

THREAT OF NEW ENTRY • Computers • Inexpensive to become part of the industry • New entry is somewhat easy • Same need

POWER OF BUYERS • Control over price • Number of buyers

POWER OF SUPPLIERS • Few suppliers • Similar services • Control over price

THREAT OF SUBSTITUTES • Cost advantage • Brand loyalty • Expenditures

PORTER’S VALUE CHAIN

DIFFERENTIATION ADVANTAGE VALUE CHAIN

PRIMARY ACTIVITIES Inbound Logistics Organize and Construct the Flow of Operations ($2, 000 Very Important) Operations Provide Services (Depends on Services, Very Important) Outbound Logistics Deliver Final Services to Clients ($100 Very Important) Marketing Sales Advertise and Promote Discounts ($1, 500 Very Important) Services Receive Feed Back and Improve ($0 Very Important)

COST DRIVERS 1. Equipment needed such as computers, calculators and software. 2. Depends on what services are provides 3. May need to deliver documents to clients 4. The budget for advertisement could increase or decrease 5. Number of feedback survey received

LINKS BETWEEN ACTIVITIES • Same software • Increase small business opportunities

OPPORTUNITIES FOR REDUCING COST • Assist clients who need home based assistance within a certain radius of my location to reduce cost. • Paper advertisement is cheaper