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    Polytechnic University of The Philippines: San Pedro Campus

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    adrian deocareza
    Porter's five forces model evaluates the competitiveness of a firm by analyzing the bargaining power of buyers and suppliers, the threat of new entrants, the threat of substitute products, and the intensity of rivalry among existing competitors. For example, if there are many suppliers of a component, buyers have more bargaining power over each supplier, but if there is only one supplier, that supplier has more power over customers.

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    Polytechnic University of The Philippines: San Pedro Campus

    Uploaded by

    adrian deocareza
    11 views1 page
    Porter's five forces model evaluates the competitiveness of a firm by analyzing the bargaining power of buyers and suppliers, the threat of new entrants, the threat of substitute products, and the intensity of rivalry among existing competitors. For example, if there are many suppliers of a component, buyers have more bargaining power over each supplier, but if there is only one supplier, that supplier has more power over customers.

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    Problem 1

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    Porter's five forces model evaluates the competitiveness of a firm by analyzing the bargaining power of buyers and suppliers, the threat of new entrants, the threat of substitute products, and the intensity of rivalry among existing competitors. For example, if there are many suppliers of a component, buyers have more bargaining power over each supplier, but if there is only one supplier, that supplier has more power over customers.

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    © All Rights Reserved
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    11 views1 page

    Polytechnic University of The Philippines: San Pedro Campus

    Uploaded by

    adrian deocareza
    Porter's five forces model evaluates the competitiveness of a firm by analyzing the bargaining power of buyers and suppliers, the threat of new entrants, the threat of substitute products, and the intensity of rivalry among existing competitors. For example, if there are many suppliers of a component, buyers have more bargaining power over each supplier, but if there is only one supplier, that supplier has more power over customers.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Polytechnic University of the Philippines

    San Pedro Campus

    Problem 1:
    Discuss the importance of Porters Five-Forces model in the evaluation of the competitiveness of
    the firm?
    Porter's five forces determine a company's competitive environment, which affects
    profitability. The bargaining power of buyers and suppliers affect a small company's ability to
    increase prices and manage costs, respectively.
    For example, if the same product is available from several suppliers, then buyers
    have bargaining power over each supplier. However, if there is only one supplier for a particular
    component, then that supplier has bargaining power over its customers. Low-entry barriers attract
    new competition, while high-entry barriers discourage it. For example, opening a home-cleaning
    business is simple, but starting a manufacturing company is considerably more difficult. Industry
    rivalry is likely to be higher when several companies are vying for the same customers, and
    intense rivalry leads to lower prices and profits.

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