Porters Five Forces Flashcards
0
Q
Threat of new entrants
A
Barriers to entry Economies of scale IP Capital requirements Regulation /govt policy Access to distribution channels Product differentiation
1
Q
Five forces are:
A
Threat of new entrants Threat of substitutes Power of suppliers Power of buyers Rivalry amongst competitors
2
Q
Threat of substitutes
A
Buyer propensity to substitute Essential? Luxury? Normal? Relative price Switching costs (menu costs) Differentiation # substitutes Ease of substitution
3
Q
Bargaining power of buyers
A
Ratio of buyers to firm concentration Dependence on distribution channels Bargaining leverage (high fixed costs?) Buyer vs firm switching costs Info availability Price sensitivity Uniqueness
4
Q
Bargaining power of suppliers
A
Number of suppliers Uniqueness of product (differentiation) Supplier Switching costs vs firm Presence of substitute inputs Employee solidarity Supplier competition
5
Q
Rivalry amongst competitors
A
Sustainable competitive advantage through innovation
Competition between online and offline companies
Powerful competitive strategy
Firm concentration ratio
Degree of transparency
