Você está na página 1de 9

THE STRUCTURE OF INDUSTRY

ADVANTAGES OF UNDERSTANDING STRUCTURE OF INDUSTRY


Level of Competition in the industry Backward and forward integration Scope of expansion and growth Entry and exist barriers to industry Return on investment

FIVE COMPONETS OF INDUSTRY STRUCTURE


Threat of entry Bargaining power of Supplier Bargaining power of customer Threat of Substitute Products or services Framing Competitive Strategy

THREAT OF NEW ENTRANTS


Government Policy Capital requirement Brand Establishment

BUYERS / SUPPLIERS BARGAINING POWER


Customization of goods Volume Level of Competition in Suppliers / customers industry

Substitute Products

Substitute limit the potential returns of an industry by placing a ceiling on the prices firms in the industry can profitably charge.

FRAMING COMPETATIVE STRATEGY

Vertical integration

Channel selection
Technological leadership

SOURCE
COMPETITIVE STRATEGY Written by MICHAEL PORTER

THANK YOU

Você também pode gostar