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Les 5 Forces de PORTER

Porter's Five Forces is a framework for analyzing competitive dynamics in an industry, focusing on rivalry among competitors, threats from new entrants, and the bargaining power of suppliers and buyers, as well as the threat of substitute products. Each force impacts profitability and competition, with examples provided from industries like smartphones, airlines, and retail. Understanding these forces helps businesses develop strategies to improve their market position.

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24 views3 pages

Les 5 Forces de PORTER

Porter's Five Forces is a framework for analyzing competitive dynamics in an industry, focusing on rivalry among competitors, threats from new entrants, and the bargaining power of suppliers and buyers, as well as the threat of substitute products. Each force impacts profitability and competition, with examples provided from industries like smartphones, airlines, and retail. Understanding these forces helps businesses develop strategies to improve their market position.

Uploaded by

fedi.mdaini
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as TXT, PDF, TXT or read online on Scribd
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Les 5 forces de Porter, also known as Porter's Five Forces, is a framework

developed by Michael E. Porter to analyze the competitive dynamics within an


industry. It helps businesses assess the factors that impact profitability and
competition. The five forces are:

1. Intensity of Rivalry Among Existing Competitors


2. Threat of New Entrants
3. Bargaining Power of Suppliers
4. Bargaining Power of Buyers
5. Threat of Substitute Products or Services

1. Intensity of Rivalry Among Existing Competitors

This force refers to the degree of competition among current players in an


industry. High competition can lead to price wars, increased marketing costs, and
innovation pressures, reducing profitability.

. Example: In the smartphone industry, rivalry between major brands like


Apple, Samsung, and Google is fierce. Each company constantly innovates and tries
to outdo the others with new features and designs, which increases competition and
forces them to invest heavily in research and marketing.

Factors that influence this force:

. Number of competitors: The more companies there are, the more intense the
competition.

. Industry growth: In a growing market, rivalry may be less intense as


companies can gain customers without taking them from competitors.

. Product differentiation: If products are highly differentiated, companies


may have less direct competition.

2. Threat of New Entrants

This force examines how easy or difficult it is for new companies to enter the
industry. If barriers to entry are low, new competitors can quickly join the market
and disrupt existing players.

. Example: In the airline industry, the threat of new entrants is relatively


low due to high capital requirements, strict regulations, and existing brand
loyalty. However, in the food delivery app industry, barriers to entry are low,
allowing many new companies to emerge quickly.

Factors that influence this force:

.Economies of scale: Larger firms can produce at lower costs, making it


harder for new entrants to compete.

.Capital requirements: If starting a business requires significant


investment, it can deter new entrants.

.Access to distribution channels: New entrants might struggle to gain access


to suppliers or retailers.
3. Bargaining Power of Suppliers

This force analyzes the power suppliers have over a business. If suppliers have
strong bargaining power, they can charge higher prices or limit the quality of
goods, squeezing the profitability of companies in the industry.

. Example: In the luxury car industry, where manufacturers rely on


specialized parts from a few suppliers, those suppliers have high bargaining power.
If a luxury car maker cannot find alternative sources, the supplier can increase
prices.

Factors that influence this force:

.Number of suppliers: If there are few suppliers, their power increases.

. Uniqueness of service: If the supplier provides a unique or critical


product, they can exert more power.

. Switching costs: If it’s costly for a business to switch suppliers, the


supplier has more control.

4. Bargaining Power of Buyers

. This force looks at the power consumers have to affect prices and demand
more quality or service. If buyers have strong bargaining power, they can push
prices down or demand better terms, impacting the company’s profitability.

. Example: In the retail industry, large buyers like Walmart have significant
bargaining power over their suppliers. They can demand lower prices or better terms
because they purchase large quantities.

Factors that influence this force:

. Number of buyers: If a company sells to a few large customers, those


customers have more power.

. Product standardization: If products are undifferentiated, buyers can


easily switch to another supplier.

. Price sensitivity: If buyers are sensitive to price, they can demand lower
prices, putting pressure on margins.

5. Threat of Substitute Products or Services

. This force evaluates the likelihood that customers will switch to a


substitute product or service. If there are many substitutes available, companies
face greater competition, and the industry becomes less attractive.

. Example: In the beverage industry, soft drinks like Coca-Cola face a threat
from substitutes such as bottled water, energy drinks, and juices.

.Customers can easily switch to these alternatives if they perceive them as


healthier or better options.

Factors that influence this force:


.Availability of substitutes: The more substitutes available, the stronger
the threat.

. Switching costs: If it is easy or cheap for consumers to switch to a


substitute, this threat increases.

. Price-performance trade-off: If a substitute offers a better performance-


to-cost ratio, it becomes more attractive.

Example Application: The Airline Industry


Let’s apply Porter’s Five Forces to the airline industry:

Rivalry Among Existing Competitors: The airline industry is highly competitive,


with companies like Delta, United, and American Airlines all vying for market
share. The rivalry is intense due to the high fixed costs of running an airline and
limited customer loyalty.

Threat of New Entrants: The threat of new entrants is relatively low because
entering the airline industry requires significant capital investment, access to
airport slots, and compliance with strict regulations.

Bargaining Power of Suppliers: Airplane manufacturers (e.g., Boeing, Airbus) and


fuel suppliers have significant bargaining power. Airlines cannot easily switch
suppliers, especially when it comes to purchasing new aircraft.

Bargaining Power of Buyers: Customers have strong bargaining power, especially with
the rise of comparison websites like Expedia and Kayak, which allow them to easily
compare ticket prices and choose the lowest fare.

Threat of Substitutes: The threat of substitutes depends on the distance being


traveled. For long-haul international flights, there are few substitutes. However,
for short-distance travel, alternatives like trains, buses, or even cars may serve
as substitutes.

By analyzing these forces, companies can better understand the competitive


environment and develop strategies to improve their market position.

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