Presentation By

•Bikram singh
•Yogeshwar Biradar
 Porter'sfive forces analysis is a
framework for the industry analysis and
business strategy development
developed by
Michael E. Porter
of
Harvard Business School in 1979.
The Five Forces
 The Threat Of The
Entry Of New
Competitors
 Economies Of Scale
 Capital Requirements
 Switching Cost / Sunk Cost
 Access To Distribution Channel
 Cost Disadvantages independent Of
Scale
 Government Policies
 The Intensity Of Competitive
Rivalry

weak Rivalry– Less Competition

Strong Rivalry—High
Competition
 Competitive Structure
 Demand Conditions
 Exit Barriers
 Number of competitors
 The Bargaining Power
Of Customers
 When Is Bargaining Power High ?
 Buyer volume
 Brand identity
 Price sensitivity
 Alternatives available
The Bargaining Power Of
Suppliers

If suppliers have high bargaining power

over a company, then in theory the
company's industry is less attractive.

 Many buyers and few dominant suppliers

 Undifferentiated, highly valued products
 Buyers do not threaten to integrate
backwards into supply
 Forward integration of suppliers
 The Threat Of
Substitute Products

 What Is close Substitute?

The Threat Depends On :

 Buyers' willingness to substitute

 The relative price and performance of
substitutes
 The costs of switching to substitutes
Example Of Paint Industry
In India…..
Thank You