Porters 5 Forces

Created by: Louis Wright
Created on: 16-04-23 14:51

What are Porters 5 forces?

1.) Threat of substitute products.
2.) Power of customers.
3.) Power of suppliers.
4.) Competition in the industry.
5.) Potential of new entrants into the industry.

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Definition of each of the 5 forces.

Threat of substitute products - other products of services that can replace a companies.
Power of customers - The pressure that customers can put on businesses.
Power of suppliers - How easily suppliers can i of increase the cost of inputs.
Competition in

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What does the 'Porters 5 Forces' model do?

This model identifies and breaks down the 5 competitive forces that shape every industry and helps determine the industries strengths and weaknesses.

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Porters 5 forces advantages

1.) Focuses on external analysis, giving firms an advantage when reacting to a change in the external environment.
2.) This framework can be used with other models.
3.) This framework emphases the importance of searching for imperfect markets which offer

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Porters 5 forces disadvantages

1.) This model is used to analyse industries and not individual companies.
2.) You cannot pay equal attention to all 5 forces. Some will need more attention than others.
3.) This strategy is external only and will not help with the internals of a business

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Other cards in this set

Card 2

Front

Definition of each of the 5 forces.

Back

Card 3

Front

What does the 'Porters 5 Forces' model do?

Back

Card 4

Front

Porters 5 forces advantages

Back

Card 5

Front

Porters 5 forces disadvantages

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Porters 5 Forces