Corporate strategy porters model can be applied to

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
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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