Porter 5 Forces

• Threat of Entry

  • Easy to enter- threat high - competitive adv goes down - profits, market share, prices go down
  • hard to Enter - barriers to entry
  • E.g patents, EOS reducing price, price wars, brand loyalty, get exclusivity rights from suppliers
• Buyer Bargaining Power

  • few buyers, many sellers, similar products- prices, rev and prof down and quality- costs go up so lower profit
  • strats to prevent this
  • differentiate product, increase marketing, price wars- sellers decrease
• Supplier bargaining Power

  • if few suppliers for material, supplier powerful- comp adv down, up cost and decease prof
  • strats to prevent
  • lock in contracts
  • max econ of scale
  • switch JIT to JIC
  • integration
• Threat of substitues

  • substitues- demand lower - prices down
  • strats to prevent
  • increase brand loyalty, better meet customer needs, low Prices
• Rivarly

  • comp up so prices down
  • strats
  • pricing strats
  • increase marketing