Business and the Competitive Environment (AQA A-Level Business): Flashcards
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Practise the cards
10 cards from this deck
Porter's Five Forces Model analyses
Porter's Five Forces Model analyses
Level of competition in an industry
Barriers to entry
Barriers to entry
How easy/difficult new firms can enter a market
High barriers to entry benefit
High barriers to entry benefit
Existing businesses (limits competition)
Forward vertical integration
Forward vertical integration
Taking control of distribution channels
Buyer power
Buyer power
How much negotiating power buyers have
Buyer power is high when
Buyer power is high when
Few buyers with many sellers
Supplier power
Supplier power
How much control suppliers have
Threat of substitutes
Threat of substitutes
How likely consumers buy an alternative product
Rivalry within industry
Rivalry within industry
How much competition exists between firms in market
Strong brand loyalty reduces
Strong brand loyalty reduces
Threat from substitute products