Page 18 - Microsoft Word - 00 P1 IW Prelims.docx

Chapter 2

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, 3 and 4.

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