BUSINESS COMPETITION

Competition is the rivalry between companies selling similar products and services with the goal of achieving
revenue, profit and market share.

- Number of Customer
- Size of Order
- Differences between Competitors
- Price Sensitivity
- Ability to Substitute
- Cost of Changing
03
Bargaining
Power of
Buyers
- Number of Supplier
- Size of Supplier 02 04
- Uniqueness of Service
PORTER’S - Substitute Performance
Bargaining Threat of
- Your ability to Substitute Power of FIVE Substitute - Cost of Change
- Cost of Changing Supplies Products
FORCES
MODEL

- Number of Supplier 05 - Number of Competitors

- Size of Supplier 01 - Quality Differences
Rivalry
- Uniqueness of Service Threat of - Other Differences
Among the
- Your ability to Substitute New Entrants - Switching Cost
Existing Firms
- Cost of Changing - Customer Loyalty

Six Major Sources of

Barriers to Entry

1. Economies of Scale 4. Switching Cost

2. Product Differentiation 5. Access to Distribution Channels
3. Capital Requirement 6. Government Policy

The Stakeholders
EXTERNAL
INTERNAL
STAKEHOLDER
STAKEHOLDER

Company/ -Supplier
-Employees
-Society
-Manager Firm
-Government
-Owners -Creditors
-Stakeholders
-Customers