Presented By:- ARIHANT----DESTROYER OF ENEMIES Shweta Bist Srishti Uniyal Sumit Suri Shobhana Sharma

INTRODUCTION

THE FIVE FORCES THAT SHAPE INDUSTRY COMPETITION

Five Forces That Shape Competition

1.

THREAT OF NEW ENTRANTS

Possibility of new firm entering into the industry also effects the profit.

Bring new capacity and desire to gain market share.

2.

RIVALRY AMONG EXISTING COMPETITORS

High rivalry limits the profitability of the company. An industries profit potential is largely determine by the intensity of competitive rivalry within that industry.

3.

BARGAINING POWER OF SUPPLIERS

Powerful suppliers captures more of the value for themselves. Powerful suppliers can exert an influence on the producing industry, such as selling raw materials at the high price to capture some of the industry profits.

4.

BARGAINING POWER OF BUYERS

Power of buyer is the impact that the customer have on producing industry. Powerful customers can capture more value by forcing down prices, demanding better quality or more services.

5. THREATS OF SUBSTITUTES

A threat of substitute occurs when a products demand is affected by change in price of a substitute product. Substitute products limit and industries profit potential by placing ceiling on prices.

APPLICATIONS

CONCLUSION