Threat of New Entrants

Barriers to entry • Economies of scale • Capital requirement • Switching cost of buyers • Access to distribution channels • Other cost advantages • Government policies Incumbant’s defense of market share Industry growth rate

Determinants of Supplier Power Supplier concentration Availability of substitute inputs Importance of suppliers’ input to buyers Suppliers’ product differentiation Importance of industry to suppliers Buyers’ switching cost to other input Suppliers’ threat of forward integration Buyers’ threat of backward integration

Rivalry Among Existing Firms Number of competitors (concentration) Relative size of competitors(balance) Industry growth rate Fixed costs vs. variable costs Product differentiation Capacity augmented in large increments Buyers’ switching costs Diversity of competitors Exit barriers Strategic stakes

Determinants of Buyer Power

Number of buyers relative to sellers Product differentiation Switching costs to use other product Buyers’ use of multiple sources Buyers’ threat of backward integration Sellers’ threat of forward integration Importance of product to the buyer Buyers’ volume

Threat of Substitute Products

Relative price of substitute Relative quality of substitute Switching costs to buyers

Porter's Five Forces

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All images are 100% editable in PowerPoint “Change color, size and orientation of any icon to your liking”

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1. Right click the object. 2. Choose Group and then Ungroup. 3. Click beside the object and drag the arrow over it.

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Ungrouping the object

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1. Select the shape to change the color and Right click the object( click any object which you want to change color)

2. Choose Format Shape in the dialog box. 3. Choose “Fill” in the Format Shape box then “Solid” or “Gradient” depending on the

appearance of the object. Change colour as shown in the picture.

Edit Color

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1. Select the shape to change the color 2. Go to Design Tab then “Colors” 3. Choose any theme color “Built In” depending on the appearance of the object.

Edit Color by Theme Colors

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