Five Forces Model

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FIVE FORCES MODEL CHERRELLE JONES Business 512 Professor Alan Matthews July 7, 2011 Key Term: FIVE FORCES MODEL Definition: Baltzan, Phillips, and Haag identified the term five forces model as it helps determine the relative attractiveness of industry and includes the following five forces model. (pg 18). Five Forces Model: 1. Buyer power 2. Supplier 3. Threat of substitute products and services 4. Threat of new entrants 5. Rivalry among existing competitors Article Summary: Porter’s Five Forces Model and Internet Competition. By: Jeffrey Bennett In this article Bennett states his opinion as, the competition has raised a total of Commerce as a result of the Internet and email. The Internet has made possible and at the top and bottom lines and expanded market share and reduce costs. There are many products and services, online only, large companies have gone online to increase the company's success with bricks and mortar, and the playing field is all the way to the edges of cyberspace, wherever it is. It will also consider this disclosure by all five powers. However, as for the summary of the article I will explain how each of the forces model relates to this article. The purchasing power which is also known as the buyer power is higher when the buyers have more choice. The companies are forced to add value to their products and services in order to maintain their loyalty. Many bonus programs are excellent services that customers want on-line. Customers want to solve their problems and often are more successful on-line and on phone. In addition, Internet companies springing up, we learn valuable goods and more services at lower costs. Now with the advent of eBay are over, many people take on roles such as drop shippers. Individuals may have to carry a thriving business selling products for large companies with no inventory.
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