Showing posts with the label bargaining customers

Porter's Five Forces for Business Analysis

Porter's Five Forces for Business Analysis   When we talking about the Stock Market (Business) valuation, there are lot of tools to analyze it. We can simply put with the EIC (Economy Industry Company) framework by Top down approach, SWOT or preferring any business life cycle models. Still there is an attractive model recommended for the valuation of a business. Porter's Five Forces is a business tool that helping to analyze a company on its competition. Industry Rivalry Threat of New Entrants Threat of Substitutes Bargaining power of Buyers Bargaining power of Suppliers   Industry Rivalry: The Marketing strategy and pricing for the product which decides a company to be successful. The rivalry is an important one for any firm which goes through the market and dominate itself to be sustained. For the automobile industry, the competition would be very high and expected to increase even further. Threat of New Entrants: New Entries are generally a threatening one