Outline Ch 1 - Outline Ch.1 4. Porter's 5 Forces Model...

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Outline Ch.1 4. Porter’s 5 Forces Model Buyer Power Supplier Power Threat of subsititue products or services Threat of new entrants Rivalry among existing competitors 5. Three Generic Strategies Broad Cost Leadership Broad Differentiation Focused Strategy Detailed Outline Ch.1 4. Porter’s 5 Forces Model Buyer Power High when there are many options for the buyer to choose from, low when there are few options to choose from Loyalty Programs – reward customers for their repeated business/ loyalty to the company. E.g.: frequent flier miles for airlines. Supplier Power High when buyers have few choices to choose from, low when buyers have many choices Supply Chain – all those included in the procurement of a product; often times an organization acts as a supplier and a buyer as they supply to the customer and buy their raw goods or product from a supplier. B2B Marketplace (Buyer-to-Buyer) One way an organization can increase their power Private Exchange - consists of a reverse auction
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Outline Ch 1 - Outline Ch.1 4. Porter's 5 Forces Model...

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