Porter's Five Forces Worksheet

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High Force: In the context of the High Force: There are in the UK
large supermarkets initial large supermarkets which dominate
investments would be very high. In the market place. Due to selling
addition there are major players who similar products rivalry is fierce, and
dominate the industry at all sizes, we often hear of 'price wars'
making it difficult for new entrants between these supermarkets. Adding
to get a profitable market share. further to the rivalry is the
increasing popularity of the discount
supermarkets, who are posing a very
real threat to the larger supermarkets
and who are rapidly growing their
market share.

Low Force: for common food items

such as bread, eggs, cheese and
milk, the supermarkets hold power
over the suppliers. This is due to
having a wide selection of suppliers
High Force: high due to the level of
to chose from and due to the vast
competition, customers have lots of
quantities of orders that they place.
choice in terms of where to shop.
Suppliers would not want to lose
Some supermarkets, for example
these large orders. This can in
Tesco, attempt to reduce buyer
extreme cases result in the
power by implementing loyalty
supermarket pushing down the price
High Force: changing buying schemes, which encourage the
resulting in suppliers not able to
behaviorand has sell
resulted customer to only shop with them.
produce their in customers
goods in a
purchasingway.
profitable theirAgroceries online as
recent example in
opposed
the UK you to inwill
a supermarket.
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about isinthelocally produced
low price of milk.goods
means customers are buying their
produce in farmers markets, local
retailers and market places. The