Porters 5 forces

Question 1

What are the the five forces

Answer 1

Buyer power
substitute threat
supplier power
Entry threat

Question 2

Horizontal competition

Answer 2

-Threat of new entrants
-Threat of substitute products
-Intensity of the competitive rivalry

Question 3

Vertical competiton

Answer 3

-Bargaining power of suppliers
-Bargaining power of the customers

Question 4

Entry threat (barriers to entry)

Answer 4

-Economies of Scale
-Vertical Integration
-Expertise and Reputation
-Brand Loyalty
-Technological Advancements
-Patents
-Sunk cost

Question 5

Buyer power

Answer 5

Powerful customers are able to exert pressure to drive down prices

Question 6

Supplier power

Answer 6

-Exercise that power
-Sell their products at a higher price
-Squeeze industry profits

Question 7

Substitute threats

Answer 7

If there are substitutes to a firm’s product, they will limit the price that can be charged.

Question 8

Intensity of Rivalry

Answer 8

-Number of competitors in the market
-Market size and growth prospects
-Product differentiation and brand loyalty
-Capacity utilization
-Cost structure of the industry