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  • Porters Five Forces Potential Entrants

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    The document discusses Porter's five forces model as it applies to the potato chip industry. It notes there are many substitutes for potato chips that require closely monitoring prices. Potential entrants face low entry and exit barriers with stable returns and industry growth. There are many competitive suppliers with low switching costs who are smaller than the company. Industry competitors experience good market growth with an intact equilibrium and low exit costs. Buyers are price sensitive but potato chips do not represent a significant fraction of their costs.

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    The document discusses Porter's five forces model as it applies to the potato chip industry. It notes there are many substitutes for potato chips that require closely monitoring prices. Potential entrants face low entry and exit barriers with stable returns and industry growth. There are many competitive suppliers with low switching costs who are smaller than the company. Industry competitors experience good market growth with an intact equilibrium and low exit costs. Buyers are price sensitive but potato chips do not represent a significant fraction of their costs.

    Copyright:

    © All Rights Reserved
    Scarica in formato DOCX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    15 visualizzazioni1 pagina

    Porters Five Forces Potential Entrants

    Caricato da

    salva8983
    The document discusses Porter's five forces model as it applies to the potato chip industry. It notes there are many substitutes for potato chips that require closely monitoring prices. Potential entrants face low entry and exit barriers with stable returns and industry growth. There are many competitive suppliers with low switching costs who are smaller than the company. Industry competitors experience good market growth with an intact equilibrium and low exit costs. Buyers are price sensitive but potato chips do not represent a significant fraction of their costs.

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    © All Rights Reserved
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    di 1

    Porters

    five
    forces
    Substitutes
    Lots of substitutes
    for potato chips
    Price has to be
    monitored closely

    Potential entrants

    Low entry and


    exit barriers
    Stable return
    Industry
    growth rate
    Economies of
    scale
    Incumbents
    defense of
    market share

    Suppliers

    Many
    competitive
    suppliers
    Low costs to
    switch
    suppliers
    Size small as
    compared to
    company

    Industry
    competetitors
    Good
    market
    growth
    Market
    equilibriu
    m intact
    Low exit
    cost

    Buyers
    Product
    doesnt
    represe
    nt
    signific
    ant
    fraction
    of
    buyers
    cost
    Price
    sensitiv

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