Porter's Five Forces
Porter’s Five Forces
Understand the essentials of Porter’s five forces in just 50 minutes with this practical and concise book. Porter’s five forces is a model which examines customer bargaining power, supplier bargaining power, the threat of substitute products, the threat of new entrants and intra-industry competition, with the aim of allowing users to anticipate industry trends and changes in the competitive environment that could pose a threat to or, alternatively, provide a new opportunity for their company.
This book will provide you with a handy introduction to the components of Porter’s five forces and explain how you can use the model to identify and evaluate your competitors in order to develop the most effective strategy and maximize your competitive advantage. It also features a real-life case study, practical advice on the use of this analysis, and an extension of the model through the inclusion of public authorities.
About Porter’s five forces
Porter’s five forces was developed in 1979 by the Harvard professor Michael E. Porter, and is a valuable tool for understanding the competitive structure of a given industry. It is based on the observation that, given that all companies evolve in a competitive environment, differentiation is essential if businesses want to attract and retain customers and avoid losing market share.
In this book, you will discover how Porter’s five forces can help your business, identify the variables affecting your industry, and use your findings to develop and preserve your competitive advantage. A clear explanation of the benefits and potential drawbacks of the method, a discussion of a practical case study, and an introduction to related models will give you the tools you need to tailor your approach to your situation.
This straightforward and accessible 33-page book is structured as follows:
- Introduction to Porter’s five forces
- Bargaining power of customers
- Bargaining power of suppliers
- Threat of substitute products
- Threat of new entrants
- Intra-industry rivalry
- Limitations and extensions of Porter’s five forces
- Limitations and criticisms
- Related models and extensions
- Practical application of Porter’s five forces
- Advice and top tips
- Case study: the e-reader industry
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