2.3 Business Needs Analysis - Porter's 5 Forces Flashcards
1
Q
What are the elements of Porter’s 5 Forces?
A
Threat of new entrants Bargaining power of buyers Threat of substitute products Bargaining power of suppliers Rivalry among existing competitors
2
Q
Give examples of factors impacting threat of new entrants
A
Barriers to entry Economies of scale Brand loyalty Capital requirements Cumulative experience Government policies Access to distribution channels Switching costs
3
Q
Give examples of factors impacting bargaining power of buyers
A
No of customers Size of each customer order Differences between competitors Price sensitivity Buyers availability to substitute Buyers information availability Switching costs
4
Q
Give examples of factors impacting threat of substitute products
A
No of substitute products available Buyer propensity to substitute Relative price performance of substitute Perceived level of product differentiation Switching costs
5
Q
Give examples of factors impacting bargaining power of suppliers
A
No and size of suppliers
Uniqueness of each supplier’s product
Food company’s ability to substitute
6
Q
Give examples of factors impacting rivalry among existing competitors
A
No of competitors Diversity of competitors Industry concentration Industry growth Quality differences Brand loyalty Barriers to exit Switching costs
