Porter 5 Forces

Porter 5 Forces

1. Bargaining Power of Suppliers

   • Number of Suppliers
   • Size of Suppliers
   • Uniqueness of Service
   • Cost of change
   • It is primarily related to the power of suppliers have to raise their prices
     • Power will be higher where there are few suppliers
     • Power will bw also higher where there are significant switching costs associated with moving to another supplier

2. Bargaining Power of Buyers

   • Number of Customers
   • Size of Customers and size of orders
   • Differences between competitors
   • Price Sensitivity
   • Switching Costs
   • It is related to Customer ability to force prices down or get improved product quality
     • It also will be higher when customers are few and concentrated and when the offering is undifferentiated

3. We are talking about Strategic analysis and the Model can be also used for the Positioning Approach strategy. The Model is used in order to analyse the ATTRACTIVENESS of the industry. So that we are in the Micro Enviroment of a chosen Market.