Porters Five Forces波特的五股力量.pptVIP

* * * * Michael Porter’s Five Forces Model Michael Porter … “An industry’s profit potential is largely determined by the intensity of competitive rivalry within that industry.” Porter’s Five Forces Portfolio Analysis … … Strategy at the time (1970s) was focused on two dimensions of the portfolio grids … … Industry Attractiveness … Competitive Position Where was Michael Porter coming from? School of Economics … … at Harvard … Structural reasons why … … some industries were profitable * Firm concentration * Established cost advantages * Product differentiation * Economies of scale Structural reasons … … all represented barriers to entry in certain industries, thus allowing those industries to be more profitable than others. Porters Five Forces … * Threat of Entry * Bargaining Power of Suppliers * Bargaining Power of Buyers * Development of Substitute Products or Services * Rivalry among Competitors Barriers to Entry … … large capital requirements or the need to gain economies of scale quickly. … strong customer loyalty or strong brand preferences. … lack of adequate distribution channels or access to raw materials. Power of Suppliers … … high when * A small number of dominant, highly concentrated suppliers exists. * Few good substitute raw materials or suppliers are available. * The cost of switching raw materials or suppliers is high. Power of Buyers … … high when * Customers are concentrated, large or buy in volume . * The products being purchased are standard or undifferentiated making it easy to switch to other suppliers. * Customers’ purchases represent a major portion of the sellers’ total revenue. Substitute products … … competitive strength high when * The relative price of substitute products declines . * Consumers’ switching costs decline. * Competitors plan to increase market penetration or production capacity. Rivalry among competitors … i