MAN47205forces - Five Forces Analysis Assessing Industry...

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Unformatted text preview: Five Forces Analysis Assessing Industry Force Strength Strategic Components of a Firms External Environment Immediate Environs The Firm General Environment Competitive Environment D e m o g r a p h i c S o c i o c u l t u r a l Political/Legal T e c h n o l o g i c a l E c o n o m i c B u y e r s S u b s t i t u t e s R i v a l r y N e w E n t r y S u p p l i e r s 4-3 The Competitive Environment Porters Five Forces Model of Industry Competition Most common analytical tool for examining competitive environment Five basic competitive forces: Intensity of rivalry among competitors in an industry Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Threat of substitute products and services What Are the Typical Weapons for Competing? Lower prices More or different performance features Better product performance Higher quality Stronger brand image and appeal Wider selection of models and styles Bigger/better dealer network Low interest rate financing Higher levels of advertising Stronger product innovation capabilities Better customer service Stronger capabilities to provide buyers Competitive Forces within an Industry - Rivals Competitive Forces within an Industry - Rivals When rivalry becomes stronger Competitors are active in making fresh moves to improve market standing and business performance Slow market growth Number of rivals increases and rivals are of equal size and competitive capability Buyer costs to switch brands are low Industry conditions tempt rivals to use price...
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MAN47205forces - Five Forces Analysis Assessing Industry...

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