Porter's five forces
Bargaining power
of suppliers
Threat of
new entrants
Porter's five
forces
Threat of
substitutes
Bargaining power
of customers
Competitive
rivalry
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Porter's five forces
Bargaining power
of suppliers
Threat of
new entrants
Porter's five
forces
Threat of
substitutes
Bargaining power
of customers
Competitive
rivalry
http://yourfreetemplates.com
Porter's five forces with explanation
Threat of
new entrants

Profitable
industries that
yield high returns
will attract new
firms. New
entrants
eventually will
decrease
profitability for
other firms in the
industry.
Threat of
substitutes

A substitute
product uses a
different
technology to try
to solve the same
economic need.
Bargaining
power of
customers

The market
outputs. The
ability of
customers to put
the firm under
pressure, which
also affects the
customer's
sensitivity to price
changes.
Bargaining
power of
suppliers

The market inputs.
Suppliers of raw
materials,
components, labor,
and services (such
as expertise) to
the firm can be a
source of power
over the firm
when there are
few substitutes.
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Competitive
rivalry

For most
industries the
intensity of
competitive rivalry
is the major
determinant of
the
competitiveness
of the industry.
Potential factors of forces
Threat of new entrants





Threat of substitutes
The existence of barriers to
entry
Cost disadvantages
independent of size
Economies of scale
Product differentiation
Brand equity



Competitive rivalry



Bargaining power of
suppliers




Sustainable competitive
advantage through innovation
Competition between online
and offline companies
Level of advertising expense
Firm concentration ratio
Supplier switching costs
relative to firm switching
costs
Degree of differentiation of
inputs
Impact of inputs on cost and
differentiation

Bargaining power of
customers




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Buyer propensity to
substitute
Buyer's switching costs
Number of substitute
products available in the
market
Ease of substitution
Buyer switching costs
Buyer information availability
Availability of existing
substitute products
Buyer price sensitivity
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