1. Name and briefly describe the industry or business five forces.
2. Give your own examples of both strong and weak forces of each type, similar to those in Figure 3-3 (Shown below)
3. Describe how technological innovations have developed in the past 10 years.

 

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FIGURE 3-3 Examples of Five Forces Force Bargaining power of customers Threat of substitutions Frequent traveler's choice of auto rental Bargaining power of suppliers Threat of new entrants Example of Strong Force Toyota's purchase of auto paint (because Toyota is a huge customer that will purchase paint in large volume) Rivalry New car dealers (because they control what the "true price" of a vehicle is and the customer cannot reliably verify the accuracy of that price) Corner latte stand (because it is an easy business to replicate) Used car dealers (because there are many to choose from) Example of Weak Force Your power over the procedures and policies of your university Patients using the only drug effective for their type of cancer Grain farmers in a surplus year (an oversupply makes the product less valuable and less profitable) Professional football team (because the number of teams is tightly controlled by the NFL) Google or Bing (expensive to develop and market a search engine) FIGURE 3-3 Examples of Five Forces Force Bargaining power of customers Threat of substitutions Frequent traveler's choice of auto rental Bargaining power of suppliers Threat of new entrants Example of Strong Force Toyota's purchase of auto paint (because Toyota is a huge customer that will purchase paint in large volume) Rivalry New car dealers (because they control what the "true price" of a vehicle is and the customer cannot reliably verify the accuracy of that price) Corner latte stand (because it is an easy business to replicate) Used car dealers (because there are many to choose from) Example of Weak Force Your power over the procedures and policies of your university Patients using the only drug effective for their type of cancer Grain farmers in a surplus year (an oversupply makes the product less valuable and less profitable) Professional football team (because the number of teams is tightly controlled by the NFL) Google or Bing (expensive to develop and market a search engine)

Answer rating: 100% (QA)

1 The industry or business five forces as originally proposed by Michael Porter are a framework for analyzing the competitive dynamics and attractiveness of an industry These forces are a Bargaining p... View the full answer