3.1.4 - Porter's Forces Flashcards Preview

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Flashcards in 3.1.4 - Porter's Forces Deck (10)
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What are Porter's 3 Forces?

1. Differentiation
2. Niche Markets
3. Price Leadership


What are Porter's 5 Forces?

1. Threat of New Entrance
2. Power of Buyers
3. Power of Suppliers/Sellers
4. Competitive Rivalry
5. Threat of Substitutes


What is an Example for Each of Porter's 5 Forces?

1. Gucci vs Supreme
2. Internet vs High-Street
3. Coca Cola vs Virgin Cola
4. Apple vs Samsung
5. Off Branding


What is the Impact of Porter's 5 Forces?

Each of the forces will affect the profitability of a business and therefore can be used to analyse their position in the market


What is the Impact of a New Entrance?

New entrants take market share from other businesses and can saturate the market


Define Barriers to Entry

Any factors that stop a business from entering a market. But, they often only exist in duopoly or oligopoly markets


What is the Impact of Buyer Power?

Large businesses often have the economies of scale to become major customers in their own right and can influence the prices they pay


What is the Impact of Supplier Power?

Suppliers can have little competition, few substitutes or have exclusive access to a supply and therefore can greatly control their prices


What is the Impact of Competitive Rivalry?

Prevents the formation of a dominant business that can use monopolistic powers to control the market through influencing competitors and controlling prices


What is the Impact of Substitutes?

Similar products from another industry can offer desirable USPs, better value or greater quality and so can draw market share from competitors