Thursday, 12 September 2024

Five forces framework examples

Here are some examples of the Five Forces framework:

*Industry:*

1. _Airline Industry:_
    - Threat of New Entrants: High (new airlines can enter)
    - Bargaining Power of Suppliers: Moderate (aircraft manufacturers)
    - Bargaining Power of Buyers: Low (individual customers)
    - Threat of Substitute Products: Low (trains, buses)
    - Competitive Rivalry: High (many airlines compete)
2. _Technology Industry:_
    - Threat of New Entrants: High (new startups can enter)
    - Bargaining Power of Suppliers: Low (component suppliers)
    - Bargaining Power of Buyers: Moderate (business customers)
    - Threat of Substitute Products: High (new technologies emerge)
    - Competitive Rivalry: High (many tech companies compete)
3. _Automotive Industry:_
    - Threat of New Entrants: Low (high barriers to entry)
    - Bargaining Power of Suppliers: Moderate (parts suppliers)
    - Bargaining Power of Buyers: Low (individual customers)
    - Threat of Substitute Products: Low (public transportation)
    - Competitive Rivalry: High (established automakers compete)

*Company:*

1. _Apple:_
    - Threat of New Entrants: Low (high brand loyalty)
    - Bargaining Power of Suppliers: Moderate (component suppliers)
    - Bargaining Power of Buyers: Low (individual customers)
    - Threat of Substitute Products: Moderate (Android devices)
    - Competitive Rivalry: High (competes with Samsung, Google)
2. _Coca-Cola:_
    - Threat of New Entrants: Low (established brand)
    - Bargaining Power of Suppliers: Moderate (bottle manufacturers)
    - Bargaining Power of Buyers: Low (individual customers)
    - Threat of Substitute Products: High (other beverages)
    - Competitive Rivalry: High (competes with Pepsi)

These examples illustrate how the Five Forces framework can be applied to various industries and companies, helping to analyze their competitive environments and develop strategies.

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