Differentiate Your Business

The bargaining power of suppliers and vendors is one of the Five Forces that Michael Porter identified that determine industry structure and attractiveness. In many ways the bargaining power of suppliers is the same as the bargaining power of customers but seen from the other party’s perspective. Powerful suppliers in the industry value chain can [...]

The threat of substitutes is an important element in the Five Forces Analysis model introduced by Michael Porter in his book Competitive Strategy. The issue of the threat of substitutes is always a factor which limits the profit potential of a market. In times of economic difficulties, the threat accelerates sharply but it also represents [...]

The bargaining power of buyers or customers is one of the five forces that determine industry profitability in Michael Porter‘s Five Forces Analysis model explained in his book Competitive Strategy. The basic idea is that by using their  bargaining power as a powerful buyer, some customers can capture a high proportion of the value you [...]

Today we will look at how you can use barriers to entry to reduce the threat of new entrants into your market. The threat of new entrants is one of the forces in Michael Porter’s Five Forces model of industry analysis. This threat applies to any business of any size, big or small. It can [...]