Porter's Five Forces within Industries

Question 1

Threat of Substitution

Answer 1

• Degree to which it is easy for competitors to attract your company’s customer base
• High threat, adjust pricing strategy, HR promotes cost efficiency
• Low threat, organization has more investment capital, HR promotes entrepreneurial culture

Question 2

Threat of Entry

Answer 2

• Degree to which it is easy for a new competitor to enter the market
• High threat, HR Promotes need for nimble workforce

Question 3

Bargaining Power of Suppliers

Answer 3

• Vulnerability to changes in supply chain vendors / partners
• High bargaining power of suppliers, HR promotes learning and development strategies that improve the workforce’s ability to negotiate, manage risk; desired employees are ethical and can manage effective vendor relationships

Question 4

Bargaining Power of Buyers

Answer 4

• Vulnerability to changes in consumer behavior

- High consumer influence, sales and marketing skills more critical

Question 5

Rivalry among Existing Competitors

Answer 5

• All forces impact rivalry among existing competitors

- Company competitive posture is either weak, tenable, favorable, strong or dominant