Porters Five Forces 5.0 / 5 based on 1 rating ? Business StudieshA2/A-levelWJEC Created by: Joebarlow_10Created on: 30-05-19 14:45 Define Porters 5 Forces A tool to determine the ability of the business to influence the market and therefore profitability of a given industry 1 of 11 What are Porters Five Forces? Barriers to Entry/ Level of Competition/ Threat of Substitutes/Buyer Power/ Supplier Power 2 of 11 What does it mean for businesses if there are low barriers to entry? Future competition is likely to greater and will restrict the firms ability to influence the market. 3 of 11 What does it mean for a business if there are high barriers to entry? They will struggle or cannot enter the market 4 of 11 What is Porters point of view with Competitive Rivalry? This is the main fore that affects the businesses ability to influence the market. 5 of 11 What does it mean if there are a high number of competitors in the business? A business will less likely to have influence. 6 of 11 What will happen if a business is able to differentiate their products? More influence. 7 of 11 What does the threat of substitute products depend upon? The ability to differentiate products. If they can differentiate products then they will decrease the threat of competition. 8 of 11 Identify some of the factors that affect the power customers have? No. of Customers (less = more power)/ Importance or amount of purchases (More=Power)/ Ability to switch products 9 of 11 In what way do suppliers have power over businesses? They can increase the costs to a business and decrease the extent to which it can control its operations. 10 of 11 How is a business affected if there is a limited amount of suppliers? They cannot switch suppliers as easily and the suppliers have the power to supply less or more. 11 of 11
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