Competitive forces porter bargaining power of

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Competitive Forces (Porter) Bargaining Power of Customers Bargaining Power of Suppliers Rivalry of Competitors Threat of New Entrants Threat of Substitutes
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1/20/19 GENERIC STRATEGIES – CREATING A BUSINESS FOCUS Organizations typically follow one of Porter’s generic strategies when entering a new market Broad market and low cost Broad market and high cost Narrow market and low cost Narrow market and high cost
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Porter’s Generic Strategies Example
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1/20/19 Apple - Merging Technology, Business and Entertainment 1. Using Porter’s Five Force Model, analyze Apple’s buyer power and supplier power. 2. Which of Porter’s Five Forces did Apple address through its initial introduction of the iPhone? 3. Which of the Generic Strategies is Apple following?
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1/20/19 Porter: Business Strategy Basics Corporate strategy is all about deciding how your firm will create economic value added Drivers of firm profitability are: Industry structure : Determines profitability of average competitor Analyze with the Five Forces Model Sustainable competitive advantage : Determines profitability relative to the average competitor Analyze using the Value Chain Model
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1/20/19 Value Creation Once an organization chooses its strategy, it can use tools such as the value chain to determine the success or failure of its chosen strategy Business process – a standardized set of activities that accomplish a specific task, such as processing a customer’s order Value chain analysis – views an organization as a series of processes, each of which adds value to the product or service for each customer
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Porter’s Value Chain Analysis
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  • Spring '08
  • Rodammer

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