3.1.5 The competitive environment Flashcards
1
Q
What does Porter’s 5 forces matrix identify?
1
A
- 5 key aspects of comp environment that affect likelihood of LT success
2
Q
What are Porter’s 5 forces?
5
A
- New entrants
- Power of buyers
- Substitutes
- Bargaining power of suppliers
- Rivalry among existing comp
3
Q
What are some characteristics of a market where rivalry is high?
3
A
- Products undifferentiated
- > Capacity utilisation
- > Barriers to entry
4
Q
What are some characteristics of a market where rivalry is low?
3
A
- Booming market = opportunity for all
- Branding = v important
- Little spare capacity
5
Q
What are some examples of barriers to entry?
2
A
- Patents
- ^Brand identity/customer loyalty
