Learning Outcomes
                 Learning Outcomes
     Review of Porter’s 5 Forces Model and it’s 
        Review of Porter’s 5 Forces Model and it’s 
        link to Porter’s generic strategy
        link to Porter’s generic strategy
     Describe and evaluate Porter’s generic 
        Describe and evaluate Porter’s generic 
        strategy 
        strategy 
     Resource-based framework for analysis
        Resource-based framework for analysis
                                     
                                     
                     Michael Porter …
                     Michael Porter …
        “An industry’s profit potential 
        “An industry’s profit potential 
           is largely determined by the 
           is largely determined by the 
           intensity of competitive 
           intensity of competitive 
           rivalry within that industry.” 
           rivalry within that industry.” 
                                     
                                     
                 Porter’s Five Forces
                 Porter’s Five Forces
                                     
                                     
             Advantage of the Model
             Advantage of the Model
     According to Porter, businesses can use 
        According to Porter, businesses can use 
        the model to identify how to position itself 
        the model to identify how to position itself 
        to take advantage of opportunities and 
        to take advantage of opportunities and 
        overcome threats
        overcome threats
                                     
                                     
                Threat of New Entrants
                Threat of New Entrants
                                   Economies of Scale
                                   Economies of Scale
                                   Product Differentiation
                                   Product Differentiation
         Barriers to 
         Barriers to               Capital Requirements
                                   Capital Requirements
           Entry
           Entry
                                   Switching Costs
                                   Switching Costs
                                   Access to Distribution Channels
                                   Access to Distribution Channels
                                   Cost Disadvantages Independent 
                                   Cost Disadvantages Independent 
                                   of Scale
                                   of Scale
                                   Government Policy
                                   Government Policy
                                   Expected Retaliation
                                   Expected Retaliation