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Porter’s 5 Forces - Coggle Diagram
Porter’s 5
Forces
Degree of
Rivalry
lots of buyer choice
offering lowest
prices and/or
high differentiation
importance of strong
brand image
=customer loyalty
reduces rivalry
Bargaining
Power of Suppliers
can sell higher prices
and reduce retailer profit
when only a few rivals
offering product/service
cost of switching
suppliers is high
customer is small
and unimportant
Bargaining
Power of
Customers
able to drive
down prices
many options to
choose from
need to set
lowest price in
the market
Threat of
New Entrants
depends on
barrier to entry
new entrants
increase competition
and force prices down
existing businesses
use brand loyalty
and low operating costs
new entrants
often use technology
Threat of
Substitutes
alternative product
that meets same
customer need
need to lower
prices when threat
is larger
customer
loyalty and
availability of
substitute can
limit threat
e-commerce
allows businesses
to provide a huge
range of substitute
products