corporate strategy Porters model can be applied to any segment of the economy

Corporate strategy porters model can be applied to

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corporate strategy, Porter's model can be applied to any segment of the economy to search for profitability and attractiveness. The five forces identified are: 1. Threats new entrants -This force determines how easy (or not) it is to enter a particular industry. If an industry is profitable and there are few barriers to enter, rivalry soon intensifies -High when many alternative are available and low when alternatives are few 2. Power of suppliers; - Strong bargaining power allows suppliers to sell higher priced or low quality raw materials to their buyers - High when buyers have few choices and low when choices are many 3. Power of customers; - This force looks at the power of the consumer to affect pricing and quality - High when buyers have many choices and low when choices are few 4. Threat of substitute products. - This force studies how easy it is for consumers to switch from a business's product or service to that of a competitor.- High when many alternative are available and low when alternatives are few 5, Competitive rivalry - The importance of this force is the number of competitors and their ability to threaten a company - High when many alternative are available and low when alternatives are few Porter’s Five Force Diagram THREAT OF NEW ENTRANTS Barriers to Entry Absolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products Rivalry THREAT OF SUBSTITUTES -Switching costs -Buyer inclination to substitute -Price-performance trade-off of substitutes SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs DEGREE OF RIVALRY -Exit barriers -Industry concentration -Fixed costs/Value added -Industry growth -Intermittent overcapacity -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate stakes
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. Porter's 5 Forces Definition | Investopedia . Ch. 2 , Major Business Initiatives Gaining Competitive Advantage with IT 3. Supply Chain Management (SCM) This chapter states a supply chain management (SCM) system is an IT system that supports supply chain management activities by automating the tracking of inventory and information among business processes and across companies SCM attempts to centrally control or link the production, shipment and distribution of a product. By managing the supply chain, companies are able to cut excess costs and deliver products to the consumer faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales and the inventories of company vendors. SCM is based on the idea
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