![]() ![]() The intensity of industry competition: number of competitors, rate of industry growth, industry overcapacity, exit barriers, diversity of competitors, informational complexity and asymmetry, brand equity, fixed cost allocation per value added, protection against imports, government policies to support/hinder competition or monopolices, coordination within the industry participants. ![]() This chart identifies Porter's 5 Forces for assessing the profitability of a value chain: threat of substitutes, threat of new entrants, bargaining power of buyers, bargaining power of suppliers, and rivalry among existing competitors.Įach of these forces has several determinants. Porter’s Five Forces framework was developed by Harvard's Michael Porter using concepts from industrial organization economics to analyze five interacting factors critical for an industry to become and remain competitive: industry competition, threat of new entrants, threat of substitutes, bargaining power of buyers and bargaining power of suppliers.
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