Managing in a complex world

3. The competitive environment

Michael Porters five forces

International Business Management

 Macro
environment

Economy
Competitive
Environment
Technology

Legal and Rivals

regulations
Suppliers
Internal
Demographics environment
Buyers
Social Issues Culture
New entrants
Natural Ecology Values
Substitutes and
complements Climate

Bateman/Snell, Management, Leading & Collaboration in a Competitive world, 10 th ed. Mc Graw-Hill,Page 49

 New entrants
Threat of new entrants

Bargaining power Bargaining power

Rival
Suppliers Customers
firms
Threat of substitutes
Opportunities of
Intensity of rivalry complements
Substitutes &
Complements
 New entrants
Threat of new entrants

Bargaining power Bargaining power

Rival
Suppliers Customers
firms
Threat of substitutes
Opportunities of
Intensity of rivalry complements
Substitutes &
Complements
Bateman/ Snell Management, Leading and
Collaborating in a Competitive World
Page 51-57 11th edition
Page 55-64 10 th edition