Five forces model, Management Theories

Five Forces Model

A framework built by Michael Porter that captures the dynamics of the prevailing environmental forces in which an organization operates.  These factors include:

1. Rivalry among Existing Firms.   At the middle of Porter's model is the present state of affairs within a market, previous any external forces are considered. Porter contends that firms are always jockeying for position within a market, and that the rivalry between firms takes on the form of a stable battle for market share.

2. Threat of New Entrants.   The first external driver, this force provides to the potential for new firms to enter an organization. Any time a new firm enters an organization, the competitive balance must be familiar to account for changes in market share, new capacity and new resources.

3. Threat of Substitutes.   Same to the first external force, this second force present the potential changes in market equilibrium caused by the introduction of goods that present a viable alternative choice to the goods presently available in the market, and could decrease the size of the potential market by drawing sales away.

4. Bargaining Power of Suppliers.    This force provides to the effect suppliers can have on determining the availability of materials, and consequently on the providers and demand dynamics operating within a market.

5. Bargaining Power of Buyers.    This force provides to the consequence buyers can have on determining the demand for products or services, and thereby affecting the corresponding price for these products and services.

Posted Date: 10/17/2012 3:35:34 AM | Location : United States







Related Discussions:- Five forces model, Assignment Help, Ask Question on Five forces model, Get Answer, Expert's Help, Five forces model Discussions

Write discussion on Five forces model
Your posts are moderated
Related Questions
Playbill Magazine had reported that the mean yearly household income of its readers is $119,155. The most recent random sample of 80 households taken from its subscription list had

Competitive Strategy (Formation of): A framework builds by Michael Porter that gives a spatial present of the 5 major factors governing the development of a competitive planni

Minimize Error Variance: A third group of factors influencing the dependent variable are known as random variables because they are temporary factors which vary fro

Draw equilibrium diagram of a binary system in which the two metals are completely soluble in the liquid state and solid state and label the various zones. What is the maximum n

suggestion regarding credit limit. should it be approved or not.what should be the amouint of credit limit electronics give to booth plastics

Whom do you think Rajender will eat with? Why?

#question.explain strategic MIS(MANAGEMENT INFORMATION SYSTEM)CATEGORIES IN DETAIL.give illustration for each categories..

essay in managemnet decission making (heuristics). Need help from someone to do the assignment for me

i need to do an Assignment on outsourcing topic. i need some relevant information and current world issues about this topic?

Management is the administration of a process or those which conducting a process to ensure that the process meets completion in the most efficient manner.