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external environment: the five forces model

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Presentation on theme: "external environment: the five forces model"— Presentation transcript:

1 external environment: the five forces model
Business Strategy external environment: the five forces model

2 Readings for Week Two Five forces analysis
forces.html Five forces analysis: Amazon recommendations-porters-model Five forces analysis: Starbucks Coffee model

3 Industry Structure/Five Forces Model
Threat of entry Bargaining power of suppliers Bargaining power of buyers Substitute products Rivalry

4 Industry Life Cycle Introduction Growth Maturity Decline

5 Determinants: Threat of Entry
Capital requirement Strength of existing brands and trademarks Level of government regulation Customer loyalty/switching costs Product similarity

6 Determinants: Supplier Power
Number of suppliers Switching costs Potential for forward integration Options for substitutes Scarcity of supplier resources

7 Determinants: Buyer Power
Number of buyers Switching costs Potential for backward integration Options for substitutes Buyer price sensitivity

8 Determinants: Substitutes
Price/quality of substitutes Switching costs

9 Determinants: Rivalry
Number of competitors Exit barriers Industry growth Product differentiation Relative size Customer loyalty


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