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
THREAT OF NEW ENTRANTS Economies of Scale Barriers to Entry Product Differentiation Capital Requirements Customer Switching Costs Access to Distribution Channels Government Policy Expected Retaliation
Example of Threat of New Entrant 1. Jio has grown at a scorching pace:-the network, which has been adding 1- 1.2 million subscribers a day, will likely have 25 million 4G customers. 2. Jio has set off a fierce mobile tariff war in the country: 3. Jio is hurting the balance sheets of other telecom companies: Airtel saw a 4.9% decline in its Q2 profit following the operator slashing data tariffs. 4. Jio is forcing the other players to join forces:-Vodafone and Idea Merger 5. Jio could impact the online content market in India:-The Jio suite offers more than 300 live streaming TV channels and hundreds of music albums and movies. This forces other incumbents to up their game in the online video streaming space.
Porter's Five Forces THREAT OF NEW ENTRANTS Food Industry large & competitive Companies enter this market every year in attempt to gain a portion of profitable market .Nestl has been around for over a century Its long history, product quality, consumer satisfaction allowed Nestl to obtain a considerable share of the market New entrants should capture a portion of Nestl 's Market to survive