5 Forces Flashcards
1
Q
What is?
A
Industry analysis model used in many company
- generic explanation of how markets behave
- Optimize the existing value chain
- create power via unique positioning
2
Q
Treat of new entrants
A
- capital requirements for entry
- how proprietary is the technology
- degree of customer loyalty and product identity
- barriers to entry (Monopoly, High FK, Know how)
- profit margins of the industry
3
Q
Rivalry among Existing industry (influence our supplier)
A
- number and relative balance among competitors
- utilization of industry capacity
- rate of industry growth
- ability of buyers to switch suppliers
- level of FK
- degree of exit barriers
4
Q
Bargaining Power of Buyers
A
- relative volume of purchase
- importance of product to buyer’s costs
- degree to which product is standard
- how easy the buyer can switch suppliers
- profit margin buyers earn of product
- among of industry information buyer has
- supply / demand balance
5
Q
Bargaining power of the supplier
A
- relative volume of purchase
- importance of feedstock to the industry’a costs
- degree to which product is standard
- how easy the industry can switch feedstock supplier
- profit margins the industry earn of product
- amount of information the industry buyers have about their suppliers
- supply / demand balance
6
Q
Treat of substitutes
A
- development of new product with similar price / performance
- availability of substitute with similar price / performance
- degree to which existing suppliers perceive a threat
encourage: competition, innovation, reduce pricing
