Five Forces analyze
The five forces are the developing strategies in the area of competitive advantage for company and organization. It applied the principles of economics and business strategy to analyze requirements in individual sectors. The five forces model with the business goals will utilize the company or projects to limit the resources, and greater the company’s potential opportunities. The strategies analysis such as: Supplier Power: This strategy is to analyses the potential suppliers with internally or externally. It assesses company/organization easy for suppliers to drive up prices, which driven by the number of suppliers of each key input, the individuality of their product or service, strength and control the cost etc. The fewer the supplier choices company have, which the more they need suppliers' help, the more powerful suppliers company have which less help they need. For example, when I was work as a basketball teacher, we often had some games or events that needed supplies. I was always contact more than three suppliers to compared prices to try lowering the cost. I used same strategy to found lowest price for our supplies. Buyer Power: This strategy is to determine the organizations or projects potential buyer, such as how many potential buyers with internally or externally. It can easy for buyers to drive prices down by the number of buyers. Buyer power is the importance of each different buyer, the cost to them of switching from one to those of someone else. Thus, the company might often get dictate terms by buyer if they only deal with few powerful buyers. For example, my customers were middle school students when I was teach basketball which I felt it had limited my opportunities for my career. Thus, I started seek the local communities and college for potential customers which I successfully had more customers and expanded my business. Competitive Rivalry: This strategy is to determine the current competitors, such as the...
Please join StudyMode to read the full document