Porters Five Forces of Industry Competitiveness Substitution Threat

Porter’s Five Forces of Industry Competitiveness Substitution Threat: Relative Price Performance Switching Costs Buyer Propensity Etc… Supplier Power: Supplier Concentration Differentiation of inputs Switching Costs Importance of Volume Ability to Forward Integrate Etc… T. Smith, Forest Products Consolidation, May 2001 Threat of Substitution Industry Rivalry Threat of New Entrants Entry Barriers: Economies of Scale Capital Requirements Access to Distribution Etc… Rivalry Determinants: Concentration and Balance Growth Intermittent Overcapacity Product Differences Exit Barriers Etc… Buyer Power: Buyer Concentration Buyer Volume Buyer Switching Costs Ability to Backward Integrate Price Sensitivity Etc…

Five Forces of Industry Competitiveness (Supply Chain) Manufacturer G-P L-P J. M. Huber Phenix Biocomposits Raw Material Supplier Timber Resins Etc… Supplier Power Channel Member Home Depot Carolina Holdings Cameron Ashley Georgia Pacific Subs. Threat I/R (Mnfr. ) Subs. Threat Buyer Power I/R (Dist. ) Supplier Power New Entrants T. Smith, Forest Products Consolidation, May 2001 New Entrants End-User/Customer DIY Customer Pulte Homes Herman Miller Buyer Power

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of New Entrants

Threat of Substitutes

Rivalry Among Competitors