The Five Competitive Forces

Assalamualaikum. How was your day?.. “my life may not be going the way I planned. But its going exactly the way Allah has planned. Indeed Allah is a better planner, the guide. So just keep praying.” Today I like to write some important thing that will come out into my final exam that I missed to explain in my post. There is Five Competitive Forces that included in chapter 3.This is actually one of analytical tool that widely used to diagnosed the competitive condition in a company’s industry. The character and strength of the competitive forces operating in industry are never the same from with other industry. Far and away the most powerful and widely used tool for diagnosing the principal competitive pressure in a market.

The  Five Competitive Forces which is :

ü  Competition from rivals sellers- pressures from other firms in the industry

ü  Competition from potential new entrants-pressures from the threat of entry of new rivals

ü  Competition from producers of substitute products-pressures from firms in other industries

ü  Supplier bargaining power-pressures stemming from supplier

ü  Customer bargaining power-pressures stemming from buyer