Ashima Negi is teaching live on Unacademy Plus
By:- Assistant Professor(Ms.)Ashima Negi Candidate For Doctorate (Ph.D.) UGC NET-Management. CA(I), MBA Finance, BBA, PGDM-Materials Management, NCFM, TOM & ISO 9000, QS g000 & Assurance, CCIBL
PORTER'S FIVE FORCES MODEL Potential entrants Threat of new entrants Bargaining power of suppliers Industry competitors Suppliers Buyers Rivalry among existing firms Bargaining power of buyers Threat of substitutes Substitute products
PORTER'S FIVE FORCES MODEL Threat of New Entrants Bargaining Power of Suppliers Rivalry Among Competing Firms in Industry Bargaining Power of Buyers Threat of Substitute Products
RIVALRY AMONG EXISTING COMPETITORS Intense rivalry often plays out in the following ways: Using price competition Staging advertising battles Increasing consumer warranties or service Making new product introductions Occurs when a firm is pressured or sees an opportunity Price competition often leaves the entire industry worse off Advertising battles may increase total industry demand, but may be costly to smaller competitors
COCA-COLA . Traditional competition: . Prices of Pepsi, local brands - Market share . Promotional actions of competition . New entrants: - New "look-a-like" manufacturers . Substitute products: Fashionable new drinks, milk drinks, coffee, beer, ..
COCA-COLA . Suppliers: . Price and availability of ingredients on world market Quality speed safety, traceability, flexibility of supply chain Buyers/consumers . High as a result of intense competition both among : . branded and unbranded products. . Combined purchase power of shops, bars, supermarkets