07-Strategy-5forces-bb

07-Strategy-5forces-bb - BMGT 301 IT& Strategy 5 Forces...

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Unformatted text preview: BMGT 301: IT & Strategy: 5 Forces K. Stewart 1 Agenda Competition: Porter’s Five Forces Porter’s puzzle Why are some industries more profitable than others? E.g., Oil & Pharmaceutical vs. restaurants & catering Porter’s Five Forces Model determines the relative attractiveness of an industry The Five Forces (Porter, 1980) In the airline industry 1. Supplier power is low 2. Threat of new entrants is low 3. Buyer power is low 4. There are not many substitutes 5. There is fierce rivalry Video: http://www.youtube.com/watch?v=mYF2_FBCvXw S u p p l i e r p o w e r . . . T h r e a t o f n e w . . . B u y e r p o w e r i s . . . T h e r e a r e n o t . . . T h e r e i s f i e r c . . . 0% 0% 0% 0% 0% Buyer Power Buyer power – high when buyers have many choices of whom to buy from and low when their choices are few What factors determine buyer power? Which has higher switching costs?...
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This note was uploaded on 02/28/2012 for the course BMGT 301 taught by Professor Wang during the Spring '08 term at Maryland.

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07-Strategy-5forces-bb - BMGT 301 IT& Strategy 5 Forces...

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