5: Business Strategies

Question 1

what is the five forces framework

Answer 1

The five forces framework developed by Michael Porter is used for determining the nature, operating attractiveness, and probable long-run profitability of a competitive industry.
Five forces analysis identifies factors that determine the operating attractiveness and likely long-run profitability of an industry by looking at five specific areas that impact industry competitiveness.

Question 2

what is PEST analysis

Answer 2

PEST analysis is a means of assessing the macroeconomic environment, including the political, economic, social, and technological characteristics of a nation or a region.(external)

Question 3

what are the five forces in the framework

Answer 3

Threat of entry into the market by new competition
Threat of substitute goods or services
Bargaining power of buyers (customers) of the industry good or service
Bargaining power of suppliers of the inputs used in the industry
Intensity of rivalry

Question 4

describe swot analysis

Answer 4

concerned with relationship between an entity and its environment,
strengths/weaknesses: internal
opportunities/threats: external

Question 5

what are the generic strategies of michael porter

Answer 5

cost leader, differentiation, and market focus (niche)