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分工情况:邓璐一、二、五;马晓潇三;纳明四 * * * * What is five forces model analysis? Competition is looked at too narrowly by manager/companies, Five Forces of Competitive Position model provides a simple perspective for assessing and analysing the competitive strength and position of a corporation or business organization. Model to determine how competitive a particular industry is. Five different variables Used to gage if an industry is attractive or not FIVE FORCE MODEL Competing with the existing competitors , but also competing with other factors for profit on a broader extent Five forces enables to look at the structural Underlying drivers of profitability in a competition in any industry Whats really causing the profitability? Industry/competitive rivalry Looks at how intense the competition is in the industry-Number and size of firms and industries If a company is big, they could exert pressure maybe small companies cannot If there are few companies, it may create Olygopoly, hand full of companies that control price If a new entrant its better to have many small companies in the industry, which will not only be fairly easy to enter the market but also to be successful in the market Fixed variable cost basis Product/service ranges Differentiation, strategy Threat of new entrants The barriers to overcome in order to access the market There may be non-existent barriers or impossible to overcome Capital expenditure Brand Loyalty-fans of particular brands-brainwash New entrant strategy – time and cost of entry Routes to market Example 1: after school program in table tennis-equipment-barrier/capital expenditure low Example 2: airline company-purchasing an airplane-significant expenditure before starting earning Government Policy - licenses, special permits Threat of substitute products Products/services that are not identical but fulfill the same underlying need Avoid entering an industry that has a significant threat of many substitute products Alternative price/ quality Mar
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