Porter_5_Force---Katherine.pptVIP

18 20 21 23 25 26 Ch9 Porter’s five forces-* Chapter 9 Porter’s Five Forces Katherine Chen Y3M2 Porter’s Five Forces Competitive forces in an industry organizational responses (一)Market segmentation (二) Market mix (三) Competitive strategy Strategies adopted by firms zzzzzzzzz Competitive Advantage Porter’s Five Forces Background: It is proposed by Michael Porter in the early 80’s. This model assembles five different factors in order to analyze the basic competitive environment or competitive strategy within an industry. Threat of Substitute Products Threat of New Entrants Rivalry Among Competing Firms in Industry Bargaining Power of Buyers Bargaining Power of Suppliers Porter’s Five Forces Model of Competition The purpose of Five-Forces Analysis The five forces are environmental forces that impact on a company’s ability to compete in a given market. The purpose of five-forces analysis is to diagnose the principal competitive pressures in a market and assess how strong and important each one is. Threat of New Entrants Threat of New Entrants Porter’s Five Forces Model of Competition Take the cell phone market in China as an example Threat of New Entrants Barriers to Entry Government Policy/Subsidies Economies of Scale Product Differentiation Capital Requirements Switching Costs Lack of Distribution Channels Cost advantages of existing producers Threat of New Entrants Case study: 1.Nick and Adidas in American sports shoes market. 2.Agricultural product market-wheat market 3.Bank industry 4.Telecom industry Analyze the entry barrier of the potential new entrants Homework P262---activity 5 P263---activity 6 Thanks for your attention! Threat of New Entrants Threat of New Entrants Porter’s Five Forces Model of Competition Bargaining Power of Buyers Bargaining Power of Buyers Buyers compete with the supplying industry by: * Bargaining down prices * Forcing higher quality Buyer groups are likely to be powerful if: Buyers are in a strong position relative