Please enable JavaScript.
Coggle requires JavaScript to display documents.
Porters Five Forces, It increases supplier power, and substitute/customer…
Porters Five Forces
-
-
-
-
Changes/ Shifts
New Entry
-
Costly technical advance (CAPEX increase) (adds BTE) (e.g. RFID in Walmart vs none at corner stores)
Supplier/ Buyer Power
Distribution channel integration (reduces profitability and increases supplier power) (e.g. retail to Walmart)
-
Rivalry
-
Merger/ Acquisition can reduce rivalry, but can get new rivals over time (US retail banking)
Rivalry among Incumbents
-
Basis of competition
Price
-
-
Fixed Cost is high, so cost is forced to marginal cost
-
-
-
-
-
-
It increases supplier power, and substitute/customer power can also be there, e.g. PC industry
-
Can be both ways, e.g. patents (raise BTE so increase profit) vs promoting union (increase supplier power so reduce profit)
Can be both ways, can increase switching cost/ decrease differentiation, can make substitution easier/ harder