Porter's Five Forces Analysis
Essay specific features
September 26, 2013
No of pages / words:
4 / 949
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Threat of entry by new competitors
3. Pressure from substitute products
4. Bargaining power of buyers (customers)
5. Bargaining power of suppliers
These five forces, taken together, give us insight into a company's competitive position, and its profitability.
Rivals are competitors within an industry...
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Rivalry in the industry can be weak, with few competitors that don’t compete very aggressively. Or it can be intense, with many competitors fighting in a cut-throat environment.
Factors affecting the intensity of rivalry are:
* Number of firms – more firms will lead to increased competition.
* Fixed costs – with high fixed costs as a percentage of total cost, companies must sell more products to cover those costs, increasing market competition...
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