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3 Competitive Environment

Michael Porter's five forces model describes the competitive environment as consisting of five forces: the threat of new entrants, the threat of substitutes, the bargaining power of suppliers, the bargaining power of buyers, and the intensity of rivalry among existing competitors. The five forces influence industry profitability and market attractiveness. Understanding these forces can help managers assess the industry and make strategic decisions.

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43 views

3 Competitive Environment

Michael Porter's five forces model describes the competitive environment as consisting of five forces: the threat of new entrants, the threat of substitutes, the bargaining power of suppliers, the bargaining power of buyers, and the intensity of rivalry among existing competitors. The five forces influence industry profitability and market attractiveness. Understanding these forces can help managers assess the industry and make strategic decisions.

Uploaded by

Alksgrtz
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Managing in a complex world

3. The competitive environment


Michael Porters five forces

International Business Management


Macro
environment

Economy
Competitive
Environment
Technology

Legal and Rivals


regulations
Suppliers
Internal
Demographics environment
Buyers
Social Issues Culture
New entrants
Natural Ecology Values
Substitutes and
complements Climate

Bateman/Snell, Management, Leading & Collaboration in a Competitive world, 10 th ed. Mc Graw-Hill,Page 49


New entrants
Threat of new entrants

Bargaining power Bargaining power

Rival
Suppliers Customers
firms
Threat of substitutes
Opportunities of
Intensity of rivalry complements
Substitutes &
Complements
New entrants
Threat of new entrants

Bargaining power Bargaining power

Rival
Suppliers Customers
firms
Threat of substitutes
Opportunities of
Intensity of rivalry complements
Substitutes &
Complements
Bateman/ Snell Management, Leading and
Collaborating in a Competitive World
Page 51-57 11th edition
Page 55-64 10 th edition

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