Page 34 - P5 Integrated Workbook TUTOR 2017-18
P. 34

Chapter 2




               Porter’s 5 forces and performance management

               The organisation should consider:

                    how  to measure the forces, for example possible metrics include:

                     –     threat from potential entrants: brand loyalty, % revenue patent protected

                     –     competitive rivalry: market share, market growth


                     –     threat from substitutes: price of substitutes, quality of substitutes

                     –     buyers’ bargaining power: number and size of buyers, switching costs

                     –     suppliers’ bargaining power: number and size of suppliers

                    how  to manage the forces


                    how  to monitor the forces using suitable performance indicators



                  Illustrations and further practice



                  Now read Illustration 2 from Chapter 2 of the Study Text






































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