Porters 5 Forces - 3. Discuss the Porter's 5 Forces and...

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3. Discuss the Porter's 5 Forces and it's impact on your group's corporation. 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, and Rivalry among the existing players. Some later economists also consider government as the sixth force in this model. When putting all these points together in a graphical representation, we get Porter's Five Forces model which looks like the graph to the left. This graph shows the Strategic Position of the company as it pertains to Suppliers, Barriers, Buyers, Rivalry, and Substitutes. Porter's Five Forces model views the business from the outside. It focuses on assessing competitive position within industry. 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, and Capital requirements. Patents, branding, and image all fall into this category. Every top decision makes has to ask:
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Porters 5 Forces - 3. Discuss the Porter's 5 Forces and...

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