Page 26 - SBL Integrated Workbook STUDENT 2018
P. 26

Chapter 3





                           Porter’s five forces




               This examines the attractiveness of the industry that the organisation faces.



                                                    Threat of new
                                                       entrants








                          Power of                   Competitive                   Power of
                            buyers                       rivalry                  customers







                                                       Threat of
                                                      substitutes



               The analysis is made more complex as industries converge and/or strategic groups
               develop.




                  Illustrations and further practice



                  Now review Illustration 2 and try TYU questions 2 and 3.





















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