This preview shows page 1. Sign up to view the full content.
Unformatted text preview: offer similar products in the same market. 2. Markets can be geographic, product areas, or segments. 3. Market commonality can be defined as the number and significance of markets that a firm competes in with rivals.
4. Resource similarity is the extent to which the type and amount of a firm’s internal resources are comparable to a rival. COMPETITIVE ANALYSIS: PORTER’S FIVE-FORCES MODEL According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of
a. Rivalry among competitive firms.
b. Potential entry of new competitors.
c. Potential development of substitute products.
d. Bargaining power of suppliers.
e. Bargaining power of consumers. COMPETITIVE ANALYSIS: PORTER’S FIVE-FORCES MODEL • These three steps can reveal whether competition in a given industry is such that a firm can make an acceptable profit:
1. Identify key aspects or elements of each competitive force that impact the firm.
2. Evaluate how strong and important each element is for the firm.
3. Decide whether the collective strength of the elements is worth the firm entering or staying in the industry. COMPETITIVE ANALYSIS: PORTER’S FIVE-FORCES MODEL
• • • Rivalry among competing firms. Is usually the most powerful of the five competitive forces. The strategies pursued by one firm can be su...
View Full Document
This document was uploaded on 02/19/2014.
- Spring '13