Portter's Five Orinciples

Essay specific features

 

Issue:

Business

 

Written by:

John M

 

Date added:

February 21, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 637

 

Was viewed:

4063 times

 

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Essay content:

These five "competitive forces" are - The threat of entry of new competitors (new entrants) - The threat of substitutes - The bargaining power of buyers - The bargaining power of suppliers - The degree of rivalry between existing competitors Threat of New Entrants New entrants to an industry can raise the level of competition, thereby reducing its attractiveness...
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The threat of new entrants largely depends on the barriers to entry. High entry barriers exist in some industries (e.g. shipbuilding) whereas other industries are very easy to enter (e.g. estate agency, restaurants). Key barriers to entry include - Economies of scale - Capital / investment requirements - Customer switching costs - Access to industry distribution channels - The likelihood of retaliation from existing industry players...
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