Porters five forces Bargaining power of suppliers Threat

  • Slides: 4
Download presentation
Porter's five forces Bargaining power of suppliers Threat of new entrants Porter's five forces

Porter's five forces Bargaining power of suppliers Threat of new entrants Porter's five forces Threat of substitutes Bargaining power of customers Competitive rivalry http: //yourfreetemplates. com

Porter's five forces with explanation Threat of new entrants l Profitable industries that yield

Porter's five forces with explanation Threat of new entrants l Profitable industries that yield high returns will attract new firms. New entrants eventually will decrease profitability for other firms in the industry. Threat of substitutes l Bargaining power of customers A substitute product uses a different technology to try to solve the same economic need. l The market outputs. The ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Bargaining power of suppliers l The market inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes. http: //yourfreetemplates. com Competitive rivalry l For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.

Potential factors of forces Threat of new entrants l l l The existence of

Potential factors of forces Threat of new entrants l l l The existence of barriers to entry Cost disadvantages independent of size Economies of scale Product differentiation Brand equity Bargaining power of suppliers l l l Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost and differentiation Threat of substitutes l l l Competitive rivalry l l Sustainable competitive advantage through innovation Competition between online and offline companies Level of advertising expense Firm concentration ratio l Bargaining power of customers l l http: //yourfreetemplates. com Buyer propensity to substitute Buyer's switching costs Number of substitute products available in the market Ease of substitution Buyer switching costs Buyer information availability Availability of existing substitute products Buyer price sensitivity

Terms of use We have released our work under the terms of Creative Commons’

Terms of use We have released our work under the terms of Creative Commons’ license, that is Attribution -No. Derivatives 4. 0 International (CC BY-ND 4. 0). And every template you download from yourfreetemplates. com is the intellectual property of and is owned by us. You are free to: l l Use — make any necessary modification(s) to our Power. Point templates to fit your purposes, personally, educationally, or even commercially. Share — any page links from our website with your friends through Facebook, Twitter and Pinterest. You are not allowed to: Upload any of our Power. Point templates, modified or unmodified, on a diskette, CD, your website or content share ones like Slideshare , Scribd, You. Tube, Linked. In, and Google+ etc. l Offer them for redistribution or resale in any form without prior written consent from yourfreetemplates. com. l For More details, please visit http: //yourfreetemplates. com/terms-of-use/ http: //yourfreetemplates. com