3.1.4 Impact of external influences Flashcards
1
Q
What are Porter’s five forces?
A
Powers of buyers Power of suppliers Threat of new entrants Threat of substitutes Competitive rivalry
2
Q
What factors influence the powers of buyers?
A
price sensitivity, choice, exclusivity
3
Q
What factors influence the powers of suppliers?
A
choice, demand, size, products
4
Q
What factors influence the threat of new entrants?
A
barriers to entry, innovation,
5
Q
What factors influence the threat of substitutes?
A
lower quality, similar products, lower costs, economic downturns
6
Q
What factors influence competitive rivalry?
A
degree of competition, share, position
7
Q
Do Porter’s 5 forces stay static?
A
No: always changing competition, markets and products are changing, social factors and customer demand changes, legislation impacting suppliers (e.g. inflation/monetary policies), availability of raw materials.
