Six forces model example. Six Forces Model คืออะไร? ที่ต่อยอดมาจาก Five Forces Model 2022-10-27

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The six forces model, also known as Porter's Five Forces, is a framework developed by economist Michael Porter to analyze the competitive forces in a market and determine the attractiveness of an industry. The model identifies six key forces that influence the competitive environment and ultimately the profitability of a business:

  1. Threat of new entrants: The ease with which new competitors can enter the market and begin operating. High barriers to entry, such as strong brand recognition or patented technologies, can protect incumbent firms from new entrants.

  2. Threat of substitutes: The availability of substitute products or services that can be used instead of the product or service being offered. If there are many substitutes available, this can put downward pressure on prices and profitability.

  3. Bargaining power of buyers: The ability of buyers to negotiate lower prices or demand higher quality from sellers. Strong bargaining power can be a result of buyers being numerous or well-informed, or if they are an important part of the seller's business.

  4. Bargaining power of suppliers: The ability of suppliers to negotiate higher prices or demand more favorable terms from buyers. Suppliers may have strong bargaining power if they are few in number or if the product they are supplying is essential to the buyer's business.

  5. Intensity of rivalry among competitors: The level of competition within the industry, including the number and size of competitors, the level of differentiation among products or services, and the intensity of marketing efforts. A highly competitive industry can lead to price wars and other aggressive tactics that can erode profitability.

  6. Threat of government intervention: The potential for government regulation or intervention to affect the industry, such as through tariffs or antitrust laws. Government intervention can create barriers to entry or disrupt the competitive landscape in other ways.

An example of the six forces model in action is the fast food industry. In this industry, the threat of new entrants is relatively low due to the high start-up costs and strong brand recognition of established players. There are also many substitutes available, such as home cooking or dining at sit-down restaurants, which puts downward pressure on prices. However, buyers (consumers) have relatively low bargaining power due to the low price point of fast food and the abundance of options available. On the other hand, suppliers (e.g. food distributors) have relatively high bargaining power due to the importance of their products to the fast food industry. The intensity of rivalry among competitors is high, with major players engaging in frequent marketing campaigns and promotions to attract customers. Finally, there is some threat of government intervention in the fast food industry, particularly with regard to health and safety regulations.

Overall, the six forces model provides a useful tool for analyzing the competitive environment of an industry and determining the potential profitability of a business. By understanding the forces at play, businesses can make informed decisions about how to position themselves in the market and how to respond to changes in the competitive landscape.

Porter's Six Forces: Benefits and Disadvantages

six forces model example

. . Elements such as globalization, interconnectivity, and technological advancements introduced new products into the market initially viewed as complementary products before slowly replacing the existing products Kamran, 2019. You can find out more on the strategies from my earlier notes on Analyze and Execute Before you make an action plan, you can analyze the Six Sources of Influence. The model has several advantage.

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Strengths And Weaknesses Of The Six Forces Model

six forces model example

An important aspect of Six Forces Model as explained by Rice,2010 is the recognition of macro-environment as in important aspect in the profitability of a business. Harvard Business Review, January 2008. . . .

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The Six Sources of Influence Model

six forces model example

. It draws upon industrial organization IO economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. . It enables you to understand that whether a proposed change or decision is worth implementation or not. .

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Six Forces Model And Why It Matters In Business

six forces model example

. . . . The more you leverage multiple sources the more you set yourself up for success.


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Tesla Inc. Five Forces Analysis (Porter’s Model) & Recommendations

six forces model example

. . . . Updated December 5, 2022 What is the Competitive Forces Model? The six markets model allows the organization to analyze the stakeholders and key market domains that can be important to it.

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Marketing diagrams

six forces model example

The threat of substitute products This factor considers how easily customers can switch between similar products or services. . . As governments continue to move slowly in enacting environmental legislation, people become more frustrated and insistent on demanding change. . . .

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Porter's Five Forces: Factors of Competition and Examples

six forces model example

How the Six Forces Model Works The It was used as a framework to analyze a company's competitive environment. For example, when petrol costs rise the public transport industry may suffer reduced profits or be forced increase prices which may cause customers to look for alternatives, e. In this external analysis case, the low switching costs enable substitutes, such as public transportation, to easily attract customers. Strategic Planning: Readings, 102-117. .

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Six Forces Model

six forces model example

. . The threats of new entrants in the market are pretty low, as the economies of scale that Nike follows is something a new entrant will never be able to follow. The makeup market is so diverse and dynamic, that it is difficult to distinguish a leading product. Competition in an industry is low if few companies are offering the same products. .

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