Porter's Five Forces

Porter's 5 Forces is a framework that focuses on the following:

• internal business environment

• operating business environment

• macro business environment

• all of the above

This force studies how easy it is for consumers to switch from a business’s product or service to that of a competitor. This is called _______________.

• Threat of substitute products or services

• Threat of new entrants

• Bargaining power of suppliers

• Bargaining power of buyers

• Rivalry among existing competitors

The force ________________, examines how easy or difficult it is for the competition to join the marketplace in the industry being examined.

• Threat of substitute products or services

• Threat of new entrants

• Bargaining power of buyers

• Bargaining power of suppliers

• Rivalry among existing competitors

This force is called _________________ which looks at the power of the consumer to affect pricing and quality.

The _________________ analyzes how much power a business’ suppliers has.

This force examines how intense the competition currently is in the market. This is called _________________.

• Threat of substitute products or services

• Threat of new entrants

• Bargaining power of buyers

• Bargaining power of suppliers

• Rivalry among existing competitors

Select all statements that are 'true'. Porter's 5 Forces:

• is designed to analyse the attractiveness of an industry in terms of its profitability

• is used to assess how the business is positioned competitively

• can be used at most stages of the life cycle

• can be categorised into 4 threats and 1 bargaining power

Select question(s) that help assess the degree of the 'Bargaining power of customers':

• How many buyers are there in the market?

• How dependent are your buyers?

• How sensitive are your customers to prices?

• How hard is it to replicate the products/services?

Select question(s) that help assess the degree of the 'Threat of existing competitors':

• What are the strengths and weaknesses of your business and your competitors?

• Can your business find solutions to competitors strategies?

• How many competitors are there in the operating area?

• How dependent are your buyers?