Porters Five Forces

List the five forces

(a)  

What is Porters first name?

• Michael

• John

• Richard

• Simon

According to the video give an example of an industry where the Five forces are benign (nonthreatening)

(a)  

In Porter's Five Forces, the 'threat of new entrants' relates to:

• Barriers to entry

• Substitutes

• Switching costs

• Buyer power

Barriers to entry into an industry are likely to be high if:

• Switching costs are low

• Differentiation is low

• Requirement for economies of scale is high

• Access to distribution channels is high

Buyer power is high if:

• Differentiation is low

• Switching costs are low

• They have little information

• The buyer requires a high quality product for their own production

Competitive rivalry will be high if:

• The industry is fragmented

• There are a few strong players in the industry

• There is a high degree of differentiation

• The industry is in its infancy

A substitute product or service is:

• A competitor's product or service

• An alternative way of meeting the same need

• A new entrant into the industry

• A less attractive way of meeting the same need

According to the video which industry which has low profitability?

(a)  

Mike, an entrepreneur, is thinking about launching a new bottled water company. Is it a clear good move? He uses Porter’s Five Forces model to structure some analysis. You must state whether the power is WEAK or STRONG

BUYER POWER: First, Mike identifies the buyer. In this case, not the ultimate drinker, but the retailer. He finds that in his home country, 80% of sales by value are through one of four supermarket chains. The remaining 20% of sales are through hundreds of independent outlets. The buyer power is therefore

(a)