Five Forces Analysis

Five Forces Analysis
Like
2
2,808
94
Like
2
2,808
94
This mind map was made with MindManager

Share this mind map

Link:
MindManager Map added Sat, Apr 12, 2014
via web

Five Forces Analysis

The Five Forces Analysis template provides a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.

1. The threat of the entry of new competitors: Profitable markets that yield high returns will attract new firms. As more entrants emerge, the profitability will decrease for all firms unless the entry of new firms can be blocked by incumbents.

2. The threat of substitute products or services: The existence of alternative products increases the propensity of customers to switch to the alternatives.

3. The bargaining power of customers (buyers): The bargaining power of customers refers to the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.

4. The bargaining power of suppliers: The bargaining power of suppliers refers to the power that suppliers may exert over the firm when there are few substitutes.

5. The intensity of competitive rivalry: For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.

Source: Mindjet
Created using: MindManager
Located in: Library > Business > Strategy
Copyright & licencing: Copyright ©Chance Brown Some Rights Reserved. This work is licenced under a Creative Commons Attribution 3.0 Unported Licence

Comments

Please login to post comments

Related Mind Maps:

tab_Help

tab_Notes

Another free MindManager Strategy Mind Map shared on Biggerplate! Register FREE to download thousands of mind map templates and examples!

View more MindManager templates.

Upcoming Webinars:

Mind Mapping for SEO
Mind Mapping for SEO
The challenge is to increase website traffic. The key is a strategic SEO plan. Sean Mitton will disc…
Speaker: Sean Mitton
Date: 28 January 2020
Business Development with Mind Maps
Business Development with Mind Maps
Colin will share how he is using mind maps to develop, build and maintain relationships over long pe…
Speaker: Colin Murphy
Date: 12 February 2020

Online Learning with Biggerplate:

MindManager PRO Tutorials
MindManager PRO Tutorials
Get more from MindManager with our PRO tutorials!
Biggerplate Certified

Validate your mind mapping software skills with Biggerplate Certification!

Learn more
Copyright 2008 - 2020 Biggerplate.com Ltd. All Rights Reserved.