Porter's Five Forces

Economies of scale = Threat of new entrants Number of suppliers = Bargaining power of suppliers Buyer volume (number of customers) = Bargaining power of buyers Number of substitute products available = Threat of substitute products or services

Brand identity/loyalty = Threat of new entrants Supplier concentration = Bargaining power of suppliers Buyer's ability to substitute = Bargaining power of buyers Number of competitors = Rivalry among existing competitors

Competitive Rivalry Among Existing Competitors = Examines how intense the current competition is in the marketplace Threat Of New Entrants = Refers to the ease with which new firms can enter the market Bargaining Power Of Suppliers = Refers to the ability of suppliers to negotiate better prices or terms Bargaining Power Of Buyers = Refers to the ability of buyers to negotiate better prices or terms

<p>Access to distribution channels = Threat of new entrants Supplier's threat of forward integration = Bargaining power of suppliers Buyer's information availability = Bargaining power of buyers Industry growth = Rivalry among existing competitors</p> Signup and view all the answers

<p>High fixed costs and high barriers to exit = Competitive Rivalry Among Existing Competitors Low switching costs for customers = Bargaining Power Of Buyers High concentration ratio = Threat Of New Entrants High demand for a product = Bargaining Power Of Suppliers</p> Signup and view all the answers

<p>Absolute cost advantages = Threat of new entrants Uniqueness of supplier's products or services = Bargaining power of suppliers Buyer's switching costs = Bargaining power of buyers Quality differences = Rivalry among existing competitors</p> Signup and view all the answers

<p>Many competitors that are roughly equal in size and power = Increases competitive rivalry Industry is growing rapidly = Decreases competitive rivalry Barriers to exit are high = Increases competitive rivalry Concentration ratio is high = Decreases competitive rivalry</p> Signup and view all the answers

<p>Expected retaliation from existing players = Threat of new entrants Industry threat of backward integration = Bargaining power of suppliers Price sensitivity = Bargaining power of buyers Product differentiation = Rivalry among existing competitors</p> Signup and view all the answers

<p>Access to latest technology = Threat of new entrants Supplier's contribution to quality or service = Bargaining power of suppliers Buyer's threat of backward integration = Bargaining power of buyers Diversity of competitors = Rivalry among existing competitors</p> Signup and view all the answers

<p>Airline industry = High barriers to exit and high fixed costs Retail industry = High bargaining power of buyers Agricultural industry = High bargaining power of suppliers Technology industry = High threat of substitute products</p> Signup and view all the answers

<p>Switching costs = Threat of new entrants Total industry cost contributed by suppliers = Bargaining power of suppliers Industry threat of forward integration = Bargaining power of buyers Barriers to exit = Rivalry among existing competitors</p> Signup and view all the answers

<p>High competitive rivalry = Leads to advertising and price wars, hurting profit margins High bargaining power of suppliers = Increases costs for businesses High threat of substitute products = Decreases demand for a product High bargaining power of buyers = Forces businesses to lower prices</p> Signup and view all the answers

<p>Experience and learning effects = Threat of new entrants Importance of volume to supplier = Bargaining power of suppliers Buyer's propensity to substitute = Bargaining power of buyers Intermittent overcapacity = Rivalry among existing competitors</p> Signup and view all the answers

<p>Easy access to distribution channels = Threat Of New Entrants High demand for a product = Bargaining Power Of Buyers Many substitutes available = Threat Of Substitute Products High concentration ratio = Competitive Rivalry Among Existing Competitors</p> Signup and view all the answers

<p>High competitive rivalry = Decreases attractiveness of an industry High bargaining power of suppliers = Decreases attractiveness of an industry Low threat of new entrants = Increases attractiveness of an industry High bargaining power of buyers = Decreases attractiveness of an industry</p> Signup and view all the answers

<p>Threat Of Substitute Products = Refers to the availability of alternative products Bargaining Power Of Suppliers = Refers to the ability of suppliers to negotiate better prices or terms Competitive Rivalry Among Existing Competitors = Refers to the intensity of competition among firms Threat Of New Entrants = Refers to the ease with which new firms can enter the market</p> Signup and view all the answers

<p>Threat of New Entrants = New capacity and the desire to gain market share Bargaining Power of Suppliers = Ability of suppliers to influence prices Threat of Substitute Products = Substitutes that attract customers away Competitive Rivalry Among Existing Competitors = Competition among existing companies</p> Signup and view all the answers

<p>Economies of scale = Minimum size required to operate efficiently Customer loyalty = Difficulty in converting customers to a new brand Large capital requirements = High investments required to start a business Government policies = Regulations that restrict new entrants</p> Signup and view all the answers

<p>Threat of New Entrants = High upfront investments to start an airline company Bargaining Power of Suppliers = fuel suppliers negotiating prices Threat of Substitute Products = train travel as an alternative to flying Competitive Rivalry Among Existing Competitors = price wars among airline companies</p> Signup and view all the answers

<p>Threat of New Entrants = Decreased profitability due to increased competition Bargaining Power of Suppliers = Higher production costs due to supplier dominance Threat of Substitute Products = Reduced demand due to alternative products Competitive Rivalry Among Existing Competitors = Lower prices and higher advertising expenses</p> Signup and view all the answers

<p>Threat of New Entrants = Reduced profit potential due to increased competition Bargaining Power of Buyers = Lower prices due to buyer negotiations Threat of Substitute Products = Reduced profit potential due to substitutes Competitive Rivalry Among Existing Competitors = Reduced profit potential due to intense competition</p> Signup and view all the answers

<p>Threat of New Entrants = Lower attractiveness due to increased competition Bargaining Power of Suppliers = Lower attractiveness due to supplier dominance Threat of Substitute Products = Lower attractiveness due to substitute products Competitive Rivalry Among Existing Competitors = Lower attractiveness due to intense competition</p> Signup and view all the answers

<p>Threat of New Entrants = Loss of market share due to new competitors Bargaining Power of Suppliers = Reduced market share due to high production costs Threat of Substitute Products = Loss of market share due to substitutes Competitive Rivalry Among Existing Competitors = Market share fluctuations due to competition</p> Signup and view all the answers

<p>Threat of New Entrants = Increased competition and price pressure Bargaining Power of Suppliers = Influence on production costs and pricing Threat of Substitute Products = Influence on product development and innovation Competitive Rivalry Among Existing Competitors = Influence on marketing and advertising strategies</p> Signup and view all the answers