FORCES THAT SHAPE

COMPETITION
 07

COMPETITIVE
RIVALS
• The number of competitors
• Diversity of competitors
• Industry growth
• Exit Barriers
• Fixed Cost
• Brand Loyalty
 07

THREAT OF NEW
ENTRANTS
• Economies of Scale
• Product Differentiation
• Capital Requirements
• Access to distribution channels
• Regulations
• Switching cost
 07

SUPPLIER
POWER
• Number of Suppliers
• Uniqueness
• Switching Cost
• Forward integration
• Industry Importance
 07

BUYER
POWER
• Number of buyers
• Purchase size
• Switching Cost
• Price sensitivity
• Informed buyers
• Size of each customer order
 07

SUBSTITUTE
THREAT
• Relative price performance
• Customer willingness to switch
• Number of substitutes available
• Switching cost
• Product differentiation
 ART OF APPLYING

FIVE FORCES IN
VARIOUS INDUSTRIES
ACTIVITY TIME

GET STARTED