poter's five forces model e-commerce

Essay specific features

 

Issue:

Business

 

Written by:

Alma M

 

Date added:

March 24, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1341

 

Was viewed:

5093 times

 

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Essay content:

The figure shows these competitive forces. The threat of substitute products The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand). ? buyer propensity to substitute ? relative price performance of substitutes ? buyer switching costs ? perceived level of product differentiation The threat of the entry of new competitors Profitable markets that yield high returns will draw firms...
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This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition). ? the existence of barriers to entry (patents, rights, etc.) ? economies of product differences ? brand equity ? switching costs or sunk costs ? capital requirements ? access to distribution ? absolute cost advantages ? learning curve advantages ? expected retaliation by incumbents ? government policies The intensity of competitive rivalry For most industries, this is the major determinant of the competitiveness of the industry...
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