1. Porter’s five forces
Supplier power
Barriers to entry
Rivalry Threat of substitutes
Buyer power
2. Porter’s five forces
Rivalry
Strive for a competitive advantage
Market share
Change prices
Improve product differentiation
Creativity using channels of distribution
Exploiting relationships with suppliers
3. Porter’s five forces
The intensity of rivalry is influenced by the
following characteristics:
Slow market growth
A large number of firms
High fixed costs
High storage costs or highly perishable
products
Low switching costs
Low levels of product differentiation
Strategic stakes are high
4. Porter’s five forces forces
Continued
High exit barriers
A diversity of rivals
Industry shakeout
5. Porter’s five forces
The threat of substitutes
Price elasticity is affected by substitute
products
discuss
6. Porter’s five forces
Buyer power
What is a monopaony?
The buyer sets the price?
What sets buyer power?
10. Porter’s five forces
Organizational (internal) economies of
scale
What is the relationship between
“Minimum efficient scale” (MES) and
market share?