Porter's 🖐 Forces

Question 1

What is Porter’s 5 Forces?

Answer 1

Created by the Harvard Business School professor - Michael Porter (1979) .

Question 2

What are these 🖐 Forces?

Answer 2

1. Competitive Rivalry
2. Supplier Power
3. Buyer Power
4. Threat of Substitution
5. Threat of New Entry

Question 3

What is competitive rivalry?

Answer 3

1. No. and strength of competitors
2. Quality of the products of the competitors
3. Aggressive price-cuts and high impact marketing campaigns of the rivals for intense competition.
4. Switching costs
5. Customer loyalty

Question 4

What is supplier power?

Answer 4

1. Number of suppliers
2. Size of suppliers
3. Uniqueness of services
4. Agility to substitute
5. Cost of Changing

Question 5

Buyer power?

Answer 5

1. No. Of customers
2. Size of each order
3. Differences between competitors
4. Price sensitivity
5. Cost of changing
6. Ability to substitute

Question 6

Threat of substitution?

Answer 6

1. Substitution performance
2. Cost of changes

Question 7

Threat of new Entry?

Answer 7

1.Time and cost of entry
2. Specialist knowledge
3. Economics of scale
4. Cost advantages
5.Technology Protection
6. Barriers to entry