Porters Five Force Model

Threat of New Entrants

 Determines Easiness To Enter
 Industry Profitable, Few Barriers ,Rivalry Intensifies.
 High Competition, Low Profits, Barriers High.
 UP GRAD
 Investment Is High.
 Regulations Support New Entrants.
 Easy To Build Distribution Network.
 Tackling: Customer Loyalty By Mentoring.
 Investing In R&D : Peer Study.
 Good Relations With Universities, Companies.
 Threats Of Substitutes
 Finding Substitutes At Better Quality, Low Switching
Cost.
 Ex: Tea, Coffee
 Cheaper Substitute Products Available, Alison, Udemy.
 UPGRAD:
 Better Substitutes Are At High Switch Cost, Coursera.
 Customers Don’t Derive The Same Utility With Cheaper
Subs.
 Tackling:
 Unique Business Model B2c, Revenue Collection.
 Job Guarantee, Good University.
 Rivalry Among Existing Firms
 Major Determinant Of Competition, Profit Sharing, Entry
Barriers, Exit Barriers.
 UPGRAD:
 Enough Number Of Players.
 High Market Growth Rate.
 Clear Market Leader.
 Highly Differenciated: First 100 Customers Interacted
With The Founder.
 Exit Barriers Are Low.
 Acquisitions : Acadview Software, Pyoopil Educational
Services, Cohort Plus.
 Bargaining Power Of Suppliers

 SBPS by low suppliers

 SBPS lead to high cost, low quality, low profit.

 UPGRAD:

 Enough Suppliers

 Not Concentrated At Only One Place.

 Bargaining Power Of Customers
 SBPC lead to demand for low price or high quality.
 Lead to loss
 It happens when ordered in bulk or low customers
 UPGRAD:
 High Demand.
 Lage Growth Rate.
 Good Customers.
 Should increase and diversify customer base.
 Product Diversification.
 Marketing Promotional Strategies.