Submitted by: Submitted by patterson6853
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Category: Business and Industry
Date Submitted: 02/02/2013 05:03 PM
Learning Objective 4:
Understand Porter’s Five Forces
• How these determinants affect the degree of each force
|Porter’s Five Forces |Examples |Degree of each force |Profitability of |
| | |(Low/High) |the industry |
| | | |(Low/High) |
|Determinants affecting barriers to entry (Force 1): | |threat of new entrants/barriers to entry | |
|Proprietary product differences (e.g., patents) |Products in the industry are protected by patents |Low threat of new entrants/high barriers to|High |
| | |entry | |
|Economies of scale (i.e., low production cost) |Low production costs in the industry |Low threat of new entrants/high barriers to|High |
| | |entry | |
|Buyer’s switching costs |The switching cost to buyers of a product are high |Low threat of new entrants/high barriers to|High...