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Chapter 4 Business-Level Strategy 51 52 53 59 76 79 80 81 82 83 84 85 86 87 88 89 94 97 99 Effective Differentiators can remain profitable even when the Five Forces appear unattractive Effective Differentiators can remain profitable even when the Five Forces appear unattractive Threat of New Entrants Can fend off New Entrants because: New products must surpass proven products * Or be equal to performance at lower prices * Can mitigate Buyer Power because: Well differentiated products reduce customer sensitivity to price increases Bargaining Power of Buyers Threat of New Entrants Can fend off New Entrants because: New products must surpass proven products * Or be equal to performance at lower prices * Effective Differentiators can remain profitable even when the Five Forces appear unattractive Threat of New Entrants Can fend off New Entrants because: New products must surpass proven products * Or be equal to performance at lower prices * Bargaining Power of Suppliers Well positioned relative to Substitutes because: Brand loyalty tends to reduce new product trial and brand switching * Threat of Substitute Products Can mitigate Buyer Power because well differentiated products reduce customer sensitivity to price increases Effective Differentiators can remain profitable even when the Five Forces appear unattractive Bargaining Power of Suppliers Threat of New Entrants Can fend off New Entrants because: New products must surpass proven products * Or be equal to performance at lower prices * Bargaining Power of Suppliers Can mitigate Buyer Power because well differentiated products reduce customer sensitivity to price increases Effective Differentiators can remain profitable even when the Five Forces appear unattractive Threat of Substitute Products Well positioned relative to Substitutes because: Brand loyalty tends to reduce new product trial and brand switching * Can mitigate Supplier Power by: Absorbing price increases due to higher margins * Passing on high
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