Porter’s Five Forces

• What is the name of the model discussed in Unit 1?

  Porter's Five Forces Model
• What are the components of Porter's Five Forces?

  Bargaining power, barriers to entry, substitutes, rivalry
• How does intense rivalry affect new market entrants?

  It makes the marketplace less attractive
• What does the intensity of competition indicate about the market?

  It indicates the attractiveness for new entrants
• Which companies are used as an example of rivalry in the model?

  Coca-Cola and Pepsi
• What are the advantages of using Porter's Five Forces Model?

  • Understand market competitiveness
  • Make decisions about competitiveness
  • Assess profitability for new entrants
  • Framework for SWOT analysis
• What does Porter's Five Forces Model help new entrants consider?

  How profitable a market may be
• What framework does Porter's Five Forces Model provide for businesses?

  SWOT analysis