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  • Porter's 5 Forces

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    ashraw78
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    Porter's Five Forces model assesses the competitive environment in an industry by analyzing five forces: the threat of new entrants is weak due to high costs of brand development and economies of scale; the threat of substitutes is moderate because substitutes have low costs but are also available; the bargaining power of customers is strong because of low switching costs and information availability; the bargaining power of suppliers is moderate as there are a number of evenly sized suppliers; and competitive rivalry is strong due to the aggressiveness of firms and restrictions on price increases.

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    5 forces

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    Porter's 5 Forces (1)

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    Porter's Five Forces model assesses the competitive environment in an industry by analyzing five forces: the threat of new entrants is weak due to high costs of brand development and economies of scale; the threat of substitutes is moderate because substitutes have low costs but are also available; the bargaining power of customers is strong because of low switching costs and information availability; the bargaining power of suppliers is moderate as there are a number of evenly sized suppliers; and competitive rivalry is strong due to the aggressiveness of firms and restrictions on price increases.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    6 views1 page

    Porter's 5 Forces

    Uploaded by

    ashraw78
    Porter's Five Forces model assesses the competitive environment in an industry by analyzing five forces: the threat of new entrants is weak due to high costs of brand development and economies of scale; the threat of substitutes is moderate because substitutes have low costs but are also available; the bargaining power of customers is strong because of low switching costs and information availability; the bargaining power of suppliers is moderate as there are a number of evenly sized suppliers; and competitive rivalry is strong due to the aggressiveness of firms and restrictions on price increases.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Porter’s Five Forces

    Threat of Threat of Bargaining power of Bargaining power of Competitive


    new entrants substitutes customers suppliers rivalry

    WEAK MODERATE STRONG MODERATE STRONG


     Low Switching Cost –  Low Cost of substitutes  Low Switching Cost – Acts  Number of Suppliers –  Aggressiveness of Firms
    Acts positively for a new – Acts positively for a positively for a customer Moderate number of – Acts negatively for the
    entrant substitute  Availability of suppliers firm
     High Cost of Brand  Availability of Information – Acts  Size of Suppliers –  Restriction on the
    Development – Acts Substitutes – Acts positively for a customer Evenly sized suppliers increase of Price – Acts
    negatively for a new negatively for a negatively for the firm
    entrant substitute
     High Economies of
    Scale – Acts negatively
    for a new entrant

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