Expanding Competitive Insights with Porter Forces Model PPT
This PPT slide, part of the 40-slide Competitive Analysis PowerPoint presentation, presents the Porter Forces Model, emphasizing its role in expanding the understanding of the competitive environment. It highlights the importance of identifying not just direct competitors, but also less obvious players that can impact market dynamics. The model categorizes competitors into distinct groups: current competitors, substitutes, and new entrants.
The section on "Threats of New Entrants" indicates that these are companies from different industries that offer products within the same class as existing competitors. The slide notes that the threat level is influenced by factors such as low barriers to entry, high industry profitability, and low buyer switching costs. This suggests that organizations must remain vigilant about potential new players that could disrupt market stability.
The "Intensity of Competition" section points out that competitors provide products within the same product class, which can lead to heightened rivalry. Understanding this intensity is crucial for strategic positioning and resource allocation.
The slide also addresses the "Threat of Substitutes," which refers to products from different classes that fulfill similar needs. These substitutes can be challenging to identify, making it essential for businesses to broaden their analysis beyond traditional competitors.
The right side of the slide introduces the "Extended Competitor Set," which includes current competitors, substitutes, and new entrants. Each category is briefly described, emphasizing that current competitors are typically the easiest to identify, while substitutes can serve the same underlying need, but are often overlooked. New entrants can emerge quickly, and their identification may depend on various market factors.
Overall, this slide serves as a valuable tool for understanding the broader competitive landscape, encouraging organizations to think beyond their immediate rivals.
This slide is part of the Competitive Analysis PowerPoint presentation.
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