Topic 2: External Environment Flashcards
1
Q
What is the Porter’s Five Forces Model?
A
A tool used to identify and analyse the five forces that shape the industry, helps determine the strengths and weaknesses of a specific industry
2
Q
What are the five forces in Porter’s Five Forces?
A
- Threat of new entrants
- Bargaining power of suppliers
- Bargaining power of buyers
- Threat of substitute products
- Industry competitors
3
Q
What is a Competitor analysis?
A
An analysis of a company’s competitors, used to understand the competitive environment and provide insight to the business to gain a competitive advantage
