The following sites consider the implications of Porters 5 Forces model
(This site carries many other useful links as well)
http://bized.ac.uk/fme/2-1.htm
http://www.sbu.ac.uk/~blackse/SMITLEC4/tsld001.htm
Background
Porters 5 forces model is developed from the microeconomic concept of market structure and its influence on competitive activity within markets. The numbers of suppliers and customers determin the structure of a market - monopolistic or oligopolistic, it also dictates the competitive strategies. Porters model also considers the potential or forces for change in the market and provides a useful framework to analyse a market.
Porter considered that the two questions "What makes the industry vulnerable to entry?" and "What determins the bargaining power of suppliers?" as central to the development of an effective strategy.
Having reviewed Porters model and the elements that make up the 'five forces' consider the car market nd answer the following:-
What are the barriers of entry to the car marker?
Where does the power lie between companies and their suppliers?
Where does the power lie between companies and their customers?
What are the major threats to the industry?
Make some note then..........
........ clickhere to continue.