5 Forces Model of Competition

Threat of new entrants
- ^{Barriers to entry:}
- Economies of scale
- Product differntitation
- Capital requirements
- Switching cost to buyers
- Access to distribution channels
- Other cost advantages
- ^{Incumbants defense of market share}
- Industry growth rate
Determinats of Supplier Power
- Suppliers concentration
- Availabilty of substitute inputs
- Importance of suppliers input to buyer
- Suppliers product differentiation
- Importance of industry to suppliers
- BUyers switching cost to other input
- Suppliers threat of forward intergration
- Buyers threat of backward integration
Rivairy Among Exsisting Firms
- Number of competitory (concentration)
- Relative size of competitors (balance)
- Industry growth rate
- Fixed costs vs. variable costs
- Product differentiation
- Capacity augmented in large increments
- Buyers switching costs
- Diversity of competitors
- Exit barriers
- Strategic stakes
Determinats of Buyer Power
- Number of buyer relative to sellers
- Product differentiation
- Switching costs to use other product
- Buyers profit margins
- Buyers use of multiple sources
- Buyers threat of backwards integration
- Buyer threat of forward integration
- Importance of product to the buyer
- Buyers volume
Threat of Substitute Products
- Relative price of substitute
- Relative quality of substitute
- Switching costs to buyers

Author

Janine

50209

Card Set

5 Forces Model of Competition

Description

Englisch

Updated

2010-11-17T17:47:05Z