5 forces Flashcards
1
Q
Threat of new entrants
A
- Sunk costs
- Barriers to entry
- Capital expenditure
- Brand reputation
- is the market attractive?
1
Q
Threat of substitutes
A
- Alternative ways of doing something
- Modern online alternatives
- Counterfeits
2
Q
Supplier Power
A
- Relationships
- number of suppliers
- quality
- dependency on the supplier
3
Q
Buyer power
A
- Ease of switching
- Alternatives
- preferences influencing price and demand
- more access to information sets higher standards in the market
4
Q
Rivalry
A
- competition for market share
- Requires continuous innovation and differentiation
