963 B
963 B
Specific Environment
Competetivness in a Sector
- Potential Competetiros
- Customers
Porters five competetive Forces
Porters five forces are used to analyse the strengths and weaknesses of a company within an industry. With this a business can better decide where to positin itself within a market.
1. Power of potential Competitors
Number of competitors in a specific sector and their ability to undercut a company.
2. Potential new competitors
How easy is it for new competitors to enter the market?
3. Power of suppliers
More powerfull suppliers demand more money for their values driving up the cost of input material.
4. Power of Customers
How powerfull the customers are affects how much the company can demand for their products or services.
5. Threat of substitute products
How unique are the products/services that a company produces, if they can easily be replaces by a similar product it does not have much power there.