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The Porter 5 Forces model analyzes five competitive forces that determine the competitiveness of an industry: the threat of new entrants, the threat of substitute products, the bargaining power of suppliers, the bargaining power of customers, and the intensity of rivalry among existing competitors. The model was developed by Michael Porter in 1979 and is used by companies to analyze their competitive environment and develop business strategies accordingly.

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19 views

Marketing

The Porter 5 Forces model analyzes five competitive forces that determine the competitiveness of an industry: the threat of new entrants, the threat of substitute products, the bargaining power of suppliers, the bargaining power of customers, and the intensity of rivalry among existing competitors. The model was developed by Michael Porter in 1979 and is used by companies to analyze their competitive environment and develop business strategies accordingly.

Uploaded by

vanessacostavn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Porter 5 Forces

Designed by Michael Porter in 1979


The model considers five factors to be studied so
that we can develop an efficient and effective
business strategy.
They are used in a company to manage its ability to
serve customers and make profits
A change in any of the forces requires a new analysis
to reassess the market.

Porter 5 Forces
Threats of New
Competitors

Bargaining Power of
Suppliers

Competition
between companies
in the sector

Threat of Substitute
Products

Bargaining Power of
Customers

Porter 5 Forces

Porter 5 Forces
Threats of New Competitors
Economy of scale
Product Differentiation
Branding
Funding needs
Costs of change
Access to distribution channels
Know-how
Favorable access to raw materials
Experience curve
Government policy

Competition Between
companies in the sector
Number of competitors
High fixed costs
Reduced differentiation
Switching costs
Diversity of competitors

Porter 5 Forces
Bargaining Power of Suppliers
Concentration of suppliers
Lack of substitutes
Differentiation of inputs
Costs of switching of suplliers
Importance of volume supplier
Cost in relation to the total
purchased industry

Bargaining Power of Customers


Concentration of customers
Volume of purchases
Lack of differentiation
Cost of change:
Reduced (to customer)
Levels (the company)
Threat of backward integration

Threat of Substitute Products


Price / performance ratio
Switching costs
Propensity of the buyer to purchase substitute products

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