Buy custom What is Porter’s 5 Forces?
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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1619 |
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reluctance to accept new releases of products)
?? The buying industry has low barriers to entry.
In such situations, the buying industry often faces a high pressure on margins from their suppliers. The relationship to powerful suppliers can potentially reduce strategic options for the organisation...
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In such a situation, new entrants could change major determinants of the market environment (e.g. market shares, prices, customer loyalty) at any time.
The threat of new entries will depend on the extent to which there are barriers to entry. These are typically:
?? Economies of scale (minimum size requirements for profitable operations)
?? High initial investments and fixed costs
?? Cost advantages of existing players due to experience curve effects of operation with fully depreciated assets
?? Brand loyalty of customers
?? Protected intellectual property like patents, licenses etc
5
?? Scarcity of important resources, e...
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