1- The 5 competitive forces.
2- Generic competitive strategies.
3- The value chain.
In this post we are going to deal cash app data exclusively and in a brief but interesting way with the first point… Michael Porter’s 5 competitive forces.
The purpose of the competitive strategy of a given business unit of a company is to find a position in the sector from which the company can defend itself from these 5 competitive forces or can influence them in its favor.
The 5 competitive forces defined by M. Porter are the following:
-The threat of entry of new competitors.
-The threat of substitute products or services.
-The bargaining power of buyers.
-The bargaining power of suppliers.
-The rivalry between the different competitors in the sector.
The first force could be summarized as the ease or complexity for other companies to penetrate a certain market. To assess this variable, we will take into account fundamental aspects such as the ease of achieving economies of scale, the differentiation or not of existing products, the capital needs to access the market, the costs of change, access to the necessary distribution channels, ecological and political factors, etc.
German Pineiro's BlogThe second competitive force refers to the ease or difficulty with which the consumer could replace one product with another that performs the same function or provides the same purpose.
The third and fourth competitive forces refer to the bargaining power of customers and suppliers. Many variables influence the decision, but to name one, I could say that the greater the number of suppliers, the greater the bargaining power a purchasing company will have, and the fewer the number, the opposite.