Porter Five Forces Analysis
Porter’s Five Forces
Strategy Skills
Team FME www.free-management-ebooks.com ISBN 978-1-62620-999-2
Copyright Notice
© www.free-management-ebooks.com 2013. All Rights Reserved
ISBN 978-1-62620-999-2
The material contained within this electronic publication is protected under International and Federal Copyright Laws and treaties, and as such any unauthorized reprint or use of this material is strictly prohibited.
You may not copy, forward, or transfer this publication or any part of it, whether in electronic or printed form, to another person, or entity.
Reproduction or translation of any part of this work without the permission of the copyright holder is against the law.
Your downloading and use of this eBook requires, and is an indication of, your complete acceptance of these ‘Terms of Use.’
You do not have any right to resell or give away part, or the whole, of this eBook.
Porter’s Five Forces
Table of Contents
Preface
2
Visit Our Website
3
Introduction
4
Porter’s Five Forces Analysis
6
Competitive Rivalry
11
Threat of New Entrants
18
Threat of Substitutes
20
Bargaining Power of Suppliers
23
Bargaining Power of Customers
25
Summary
28
Other Free Resources
30
References
31
ISBN 978-1-62620-999-2 © www.free-management-ebooks.com
1
Porter’s Five Forces
Preface
This eBook describes Porter’s Five Forces Framework, a technique that provides a model for industry analysis and business strategy development.
You will learn:
●●
The five key factors the model uses to identify and evaluate potential opportunities and risks
●●
The importance of defining your market accurately and how this can affect the usefulness of the results you obtain
●●
How to measure competitive rivalry using the Concentration Ratio and the Herfindahl–Hirschman Index
●●
How the availability of close substitute products can make an industry more
Strategy Skills
Team FME www.free-management-ebooks.com ISBN 978-1-62620-999-2
Copyright Notice
© www.free-management-ebooks.com 2013. All Rights Reserved
ISBN 978-1-62620-999-2
The material contained within this electronic publication is protected under International and Federal Copyright Laws and treaties, and as such any unauthorized reprint or use of this material is strictly prohibited.
You may not copy, forward, or transfer this publication or any part of it, whether in electronic or printed form, to another person, or entity.
Reproduction or translation of any part of this work without the permission of the copyright holder is against the law.
Your downloading and use of this eBook requires, and is an indication of, your complete acceptance of these ‘Terms of Use.’
You do not have any right to resell or give away part, or the whole, of this eBook.
Porter’s Five Forces
Table of Contents
Preface
2
Visit Our Website
3
Introduction
4
Porter’s Five Forces Analysis
6
Competitive Rivalry
11
Threat of New Entrants
18
Threat of Substitutes
20
Bargaining Power of Suppliers
23
Bargaining Power of Customers
25
Summary
28
Other Free Resources
30
References
31
ISBN 978-1-62620-999-2 © www.free-management-ebooks.com
1
Porter’s Five Forces
Preface
This eBook describes Porter’s Five Forces Framework, a technique that provides a model for industry analysis and business strategy development.
You will learn:
●●
The five key factors the model uses to identify and evaluate potential opportunities and risks
●●
The importance of defining your market accurately and how this can affect the usefulness of the results you obtain
●●
How to measure competitive rivalry using the Concentration Ratio and the Herfindahl–Hirschman Index
●●
How the availability of close substitute products can make an industry more
References: Aguilar F.J. (1967), Scanning the Business Environment, Macmillan. Cadle, J., Paul, D. and Turner, P. (2010), Business Analysis Techniques, 72 Essential Tools for Success, BCS The Chartered Institute for IT. Johnson, G., Whittington, R. and Scholes, K. (2009), Exploring Corporate Strategy with MyStrategyLab, Financial Times/Prentice Hall. Kotler, P., Keller, K.L., Brady, M., Goodman, M., and Hansen, T. (2009), Marketing Management, Pearson Education. McDonald, M. and Wilson, H. (2011), Marketing Plans: How to Prepare Them, How to Use Them, 7th Edition, John Wiley. ISBN 978-1-62620-999-2 © www.free-management-ebooks.com 31