• Porter theorized that understanding both the competitive forces at play and the overall industry structure are crucial for effective, strategic decision-making, and developing a compelling competitive strategy for the future.

    In Porter's model, the five forces that shape industry competition are

    1. Competitive rivalry
    This force examines how intense the competition is in the marketplace. It considers the number of existing competitors and what each one can do. Rivalry competition is high when there are just a few businesses selling a product or service, when the industry is growing and when consumers can easily switch to a competitor's offering for little cost. When rivalry competition is high, advertising and price wars ensue, which can hurt a business's bottom line.

    2. The bargaining power of suppliers
    This force analyzes how much power a business's supplier has and how much control it has over the potential to raise its prices, which, in turn, lowers a business's profitability. It also assesses the number of suppliers of raw materials and other resources that are available. The fewer supplier there are, the more power they have. Businesses are in a better position when there are multiple suppliers.

    3. The bargaining power of customers
    This force examines the power of the consumer, and their effect on pricing and quality. Consumers have power when they are fewer in number but there are plentiful sellers and it's easy for consumers to switch. Conversely, buying power is low when consumers purchase products in small amounts and the seller's product is very different from that of its competitors.

    4. The threat of new entrants
    This force considers how easy or difficult it is for competitors to join the marketplace. The easier it is for a new competitor to gain entry, the greater the risk is of an established business's market share being depleted. Barriers to entry include absolute cost advantages, access to inputs, economies of scale and strong brand identity.

    5. The threat of substitute products or services
    This force studies how easy it is for consumers to switch from a business's product or service to that of a competitor. It examines the number of competitors, how their prices and quality compare to the business being examined, and how much of a profit those competitors are earning, which would determine if they can lower their costs even more. The threat of substitutes is informed by switching costs, both immediate and long-term, as well as consumers' inclination to change.


  • You are very adept in the business finance area. do you know anything about the forex market. i am investigating it currently with a dummies guide to foriegn currency. ild love to hear what you think


  • @chewie Thanks, I'm focusing on real business and factories cos it's weak in my country ,We encourage investment in here, but I look up to join the forex market too.


  • @Nouri-Ghali Agility-Emerging-Markets-Logistics-Index-2020-Highlights.pdf

    This is what drew me to look into the foriegn markets


  • Omfg you are spilling the truth to commoners. This is part of my syllabus. 🤧