Porter’S Five Forces

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Minnie B


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July 17, 2016








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The objective of strategic planning is to modify these competitive forces such that the organization’s position is improved. Management can then decide, based on the information given by the Five Forces model, how to influence or to exploit industry characteristics. Bargaining Power of Suppliers The term “suppliers” comprises all sources for inputs necessary to provide products...
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And “supplier power” refers to their relative bargaining power, which, when high, allows significant influence on the industry and expropriation of profits. Home Depot’s expense controls and cost initiatives – its core competencies – derive in part from efficient supply chain management. The company also plans to centralize purchasing operations and to decrease merchandise inventories, both of which will further reduce the power of its suppliers...
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