Analysing the external environment: the competitive environment
- Created by: emilyhuffordx
- Created on: 11-01-18 09:32
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Changes in the competitive environment
- Porters five forces model
- Bargaining power of suppliers = power arises from a variety of sources;
- Number of suppliers operating - fewer suppliers normally means more powerful suppliers
- The cost involved in changing suppliers - if it is more difficult/ expensive, suppliers have greater power
- The availability of substitutes - if there is little availability or if the items they supply are scarce they have greater power
- The customers size relative to the size of the supplier - if the supplier is much smaller they have less power over the bigger customer
- Whether or not there are other uses exist for the products sold by the supplier
- To what extent the supplier poses a creditable threat to intergrate forwards and enter its customers market as a rival, or to takeover the business itself
- Bargaining power of buyers/ customers = Buyers or customers can exert influence and control over an industry in certain circumstances
- The products sold by businesses are similar…
- Bargaining power of suppliers = power arises from a variety of sources;
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