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Porters 5 forces class presentation

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The 5 Competitive Forces That Shape Strategy
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Economist Michael E. Porter identified……… Image : Extracted from Google Source : Harvard Business Review / January 2008 / hbr.org
Introduction – Importance of The 5 Forces How to deal with competition? Strategize : * Competitive advantage * Cost advantage * Market dominance * New product development * Contraction / Diversification * Price leadership * Global * Re-engineering * Downsizing * De-layering * Restructuring Measure and monitor strategy effectiveness What strategy to use? Basic knowledge of business strategy & forces that influence the decision making … ..vital in successful Strategic Management ! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Issue – Limitations of 5 Forces Rivalry among existing competitors Threat of substitute products or service Threat of new entrants Bargaining power of suppliers Bargaining power of buyers 5 Forces Soft factors: Skills Culture Intangible assets Reputation Definition of competitors & customers Impact of IT Economic turbulence
Emerging of New Forces Organization Reinvention Customers’ Expectations Information Technology
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Rivalry Among Existing Competitor (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rivalry Among Existing Competitor (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rivalry Among Existing Competitor (3) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rivalry Among Existing Competitor (4) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rivalry Among Existing Competitor (5) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Rivalry Among Existing Competitor (6)
The Power of Buyer (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Power of Buyer (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Power of Buyer (3) ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Power of Buyer (Example) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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Threats of New Entrants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Starbucks Fight against Threats of New Entrants (1) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Starbucks Fight against Threats of New Entrants (2) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Suppliers Power ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Starbucks Defense against Suppliers Power (1) ,[object Object],[object Object],[object Object],[object Object]
Starbucks Defense against Suppliers Power (2) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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The Power of Substitutes Products or Services (1) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The Power of Substitutes Products or Services (2) ,[object Object],[object Object],[object Object],[object Object]
The Power of Substitutes Products or Services (3) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Porter’s opinion is that to strategize product on price, quality, after sales service and location in order to create value and to reduce another product from looking “attractive”. In other words, Porter’s theory is to create a difference or be different. By being distinctive, you are able to win over your customer though there are dozens of products with similar functions in the market. Example: Google and other search engines like Yahoo, Excite, Lycos, Alta Vista Etc The Power of Substitutes Products or Services (4)
The Power of Substitutes Products or Services (5) ,[object Object],[object Object],[object Object]
The Power of Substitutes Products or Services (6) ,[object Object],[object Object],[object Object],[object Object]
Conclusion ,[object Object],[object Object],[object Object]
References ,[object Object],[object Object],[object Object],[object Object]
References (Cont.) ,[object Object],[object Object],[object Object],[object Object]

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Porters 5 forces class presentation

  • 1. The 5 Competitive Forces That Shape Strategy
  • 2.
  • 3.
  • 4. Economist Michael E. Porter identified……… Image : Extracted from Google Source : Harvard Business Review / January 2008 / hbr.org
  • 5.
  • 6. Issue – Limitations of 5 Forces Rivalry among existing competitors Threat of substitute products or service Threat of new entrants Bargaining power of suppliers Bargaining power of buyers 5 Forces Soft factors: Skills Culture Intangible assets Reputation Definition of competitors & customers Impact of IT Economic turbulence
  • 7. Emerging of New Forces Organization Reinvention Customers’ Expectations Information Technology
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Rivalry Among Existing Competitor (6)
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
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  • 30. Porter’s opinion is that to strategize product on price, quality, after sales service and location in order to create value and to reduce another product from looking “attractive”. In other words, Porter’s theory is to create a difference or be different. By being distinctive, you are able to win over your customer though there are dozens of products with similar functions in the market. Example: Google and other search engines like Yahoo, Excite, Lycos, Alta Vista Etc The Power of Substitutes Products or Services (4)
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