PRESENTATION

BY SANDEEP

AND JITENDER

“PORTER- 5”
 TOOLS FOR IDENTIFYING
INVESTMENT OPPORTUNITIES
(1) ●
PORTER MODEL

(2) LIFE CYCLE APPROACH

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(3) EXPERIENCE CURVE

●
 THREAT OF NEW ENTRANTS
BARRIER TO ENTRY:
• Economy Of Scale
• Product Differentiation
• Capital Requirement
• Govt. Policy
• Switching Cost To Buyers
• Access To Distribution Channels (Brand Image,loyality)
• Industrial Growth Rate

“PORTER- 1”
 RIVALRY B/W EXISTING FIRMS

•Large No. Of Competitors

•Relative Size Of Competitors(balance)
•Industry Growth Rate
•Fixed Cost And Variable Cost
•Buyers Switching Cost
•High Exit Barrier

“PORTER- 2”
 BARGINING POWER OF BUYERS

•It Purchases Are Large Relative To Sale Of Seller

•Switching Cost Are Low
•Buyers Profit Margins
•Importance Of Product To The Buyer

“PORTER- 3”
 BARGAINING POWER OF SUPPLIERS

•Hardly Available Substitutes

•High Switching Cost Of Buyers
•Dominant Suppliers
•Importance Of Suppliers Input To Buyer

“PORTER- 4”
 PRESSURE FROM SUSTITUTE
PRODUCTS

•LOW SWITCHING COST TO BUYER

•LOW PRICE OF SUBSTITUTE
•BETTER QUALITY OF SUBSTITUTE

“PORTER- 5”