My notes for Five Forces

My notes for Five Forces - My notes for Five Forces...

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My notes for Five Forces Porter's Five Forces model is made up by identification of 5 fundamental competitive forces: Barriers to entry Threat of substitutes Bargaining power of buyers Bargaining power of suppliers Rivalry among the existing players Porter's Five Forces model views the business from outside. It focuses on assessing competitive position within industry When putting all these points together in a graphical representation, we get Porter's Five Forces model which looks like this: Force 1: Barriers to entry Barriers to entry measure how easy or difficult it is for new entrants to enter into the industry. This can involve for example: Cost advantages (economies of scale, economies of scope) Access to production inputs and financing, Government policies and taxation Patents, branding, and image also fall into this category. Force 2: Threat of substitutes Every top decision makes has to ask: How easy can our product or service be substituted? The following
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This note was uploaded on 09/01/2011 for the course BUSINESS 101 taught by Professor Jones during the Spring '11 term at Southern Nazarene.

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My notes for Five Forces - My notes for Five Forces...

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