Topic Two, Part 1 - Business Objectives and Strategy Flashcards
1
Q
What is Porters five forces model?
A
Analyses level of competition in the market
2
Q
What are the five forces of Porter’s model?
A
Competition
Supplier power
Buyer power
Threat of substitution
3
Q
How does buyer power affect a business?
A
Less customers, means they have more power
4
Q
What does competitive rivalry look at in porters five forces model?
A
The number of and strength of competitors
5
Q
What does Supplier power look at in porters five forces model?
A
How easy suppliers can change the price
6
Q
What does Threat of substitution look at in porters five forces model?
A
Likelihood of customers finding alternative
