porter波特五力模型详解.docx

1、porter波特五力模型详解Porters Five ForcesA MODEL FOR INDUSTRY ANALYSISThe model of pure petition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability

2、; part of this difference is explained by industry structure.Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in whic

3、h the firm operates.Diagram of Porters 5 ForcesSUPPLIER POWERSupplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relativ

4、e to total purchases in industry BARRIERSTO ENTRYAbsolute cost advantages Proprietary learning curve Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products THREAT OFSUBSTITUTES-Switchi

5、ng costs -Buyer inclination tosubstitute -Price-performancetrade-off of substitutes BUYER POWERBargaining leverage Buyer volume Buyer information Brand identity Price sensitivity Threat of backward integration Product differentiation Buyer concentration vs. industry Substitutes available Buyers ince

6、ntives DEGREE OF RIVALRY-Exit barriers -Industry concentration -Fixed costs/Value added -Industry growth -Intermittent overcapacity -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate stakes I.RivalryIn the traditional economic model, petition among rival firms driv

7、es profits to zero. But petition is not perfect and firms are not unsophisticated passive price takers. Rather, firms strive for a petitive advantage over their rivals. The intensity of rivalry among firms varies across industries, and strategic analysts are interested in these differences.Economist

8、s measure rivalry by indicators ofindustry concentration. The Concentration Ratio (CR) is one such measure. The Bureau of Census periodically reports the CR for major Standard Industrial Classifications (SICs). The CR indicates the percent of market share held by the four largest firms (CRs for the

9、largest 8, 25, and 50 firms in an industry also are available). A high concentration ratio indicates that a high concentration of market share is held by the largest firms - the industry is concentrated. With only a few firms holding a large market share, the petitive landscape is less petitive (clo

10、ser to a monopoly). A low concentration ratio indicates that the industry is characterized by many rivals, none of which has a significant market share. These fragmented markets are said to be petitive. The concentration ratio is not the only available measure; the trend is to define industries in t

11、erms that convey more information than distribution of market share.If rivalry among firms in an industry is low, the industry is considered to be disciplined. This discipline may result from the industrys history of petition, the role of a leading firm, or informal pliance with a generally understo

12、od code of conduct. Explicit collusion generally is illegal and not an option; in low-rivalry industries petitive moves must be constrained informally. However, a maverick firm seeking a petitive advantage can displace the otherwise disciplined market.When a rival acts in a way that elicits a counte

13、r-response by other firms, rivalry intensifies. The intensity of rivalry monly is referred to as being cutthroat, intense, moderate, or weak, based on the firms aggressiveness in attempting to gain an advantage.In pursuing an advantage over its rivals, a firm can choose from several petitive moves:C

14、hanging prices - raising or lowering prices to gain a temporary advantage.Improving product differentiation - improving features, implementing innovations in the manufacturing process and in the product itself.Creatively using channels of distribution - using vertical integration or using a distribu

15、tion channel that is novel to the industry. For example, with high-end jewelry stores reluctant to carry its watches, Timex moved into drugstores and other non-traditional outlets and cornered the low to mid-price watch market.Exploiting relationships with suppliers - for example, from the 1950s to

16、the 1970s Sears, Roebuck and Co. dominated the retail household appliance market. Sears set high quality standards and required suppliers to meet its demands for product specifications and price.The intensity of rivalry is influenced by the following industry characteristics:1.A larger number of fir

17、msincreases rivalry because more firms must pete for the same customers and resources. The rivalry intensifies if the firms have similar market share, leading to a struggle for market leadership.2.Slow market growthcauses firms to fight for market share. In a growing market, firms are able to improv

18、e revenues simply because of the expanding market.3.High fixed costs result in an economy of scale effect that increases rivalry. When total costs are mostly fixed costs, the firm must produce near capacity to attain the lowest unit costs. Since the firm must sell this large quantity of product, hig

19、h levels of production lead to a fight for market share and results in increased rivalry.4.High storage costs or highly perishable products cause a producer to sell goods as soon as possible. If other producers are attempting to unload at the same time, petition for customers intensifies.5.Low switc

20、hing costsincreases rivalry. When a customer can freely switch from one product to another there is a greater struggle to capture customers.6.Low levels of product differentiation is associated with higher levels of rivalry. Brand identification, on the other hand, tends to constrain rivalry.7.Strat

21、egic stakes are high when a firm is losing market position or has potential for great gains. This intensifies rivalry.8.High exit barriers place a high cost on abandoning the product. The firm must pete. High exit barriers cause a firm to remain in an industry, even when the venture is not profitabl

22、e. A mon exit barrier is asset specificity. When the plant and equipment required for manufacturing a product is highly specialized, these assets cannot easily be sold to other buyers in another industry. Litton Industries acquisition of Ingalls Shipbuilding facilities illustrates this concept. Litt

23、on was successful in the 1960s with its contracts to build Navy ships. But when the Vietnam war ended, defense spending declined and Litton saw a sudden decline in its earnings. As the firm restructured, divesting from the shipbuilding plant was not feasible since such a large and highly specialized

24、 investment could not be sold easily, and Litton was forced to stay in a declining shipbuilding market.9.A diversity of rivals with different cultures, histories, and philosophies make an industry unstable. There is greater possibility for mavericks and for misjudging rivals moves. Rivalry is volati

25、le and can be intense. The hospital industry, for example, is populated by hospitals that historically are munity or charitable institutions, by hospitals that are associated with religious organizations or universities, and by hospitals that are for-profit enterprises. This mix of philosophies abou

26、t mission has lead occasionally to fierce local struggles by hospitals over who will get expensive diagnostic and therapeutic services. At other times, local hospitals are highly cooperative with one another on issues such as munity disaster planning.10.Industry Shakeout.A growing market and the pot

27、ential for high profits induces new firms to enter a market and incumbent firms to increase production. A point is reached where the industry bees crowded with petitors, and demand cannot support the new entrants and the resulting increased supply. The industry may bee crowded if its growth rate slo

28、ws and the market bees saturated, creating a situation of excess capacity with too many goods chasing too few buyers. A shakeout ensues, with intense petition, price wars, and pany failures. BCG founder Bruce Henderson generalized this observation as the Rule of Three and Four: a stable market will

29、not have more than three significant petitors, and the largest petitor will have no more than four times the market share of the smallest. If this rule is true, it implies that:oIf there is a larger number of petitors, a shakeout is inevitableoSurviving rivals will have to grow faster than the marke

30、toEventual losers will have a negative cash flow if they attempt to growoAll except the two largest rivals will be losersoThe definition of what constitutes the market is strategically important.Whatever the merits of this rule for stable markets, it is clear that market stability and changes in sup

31、ply and demand affect rivalry. Cyclical demand tends to create cutthroat petition. This is true in the disposable diaper industry in which demand fluctuates with birth rates, and in the greeting card industry in which there are more predictable business cycles.II. Threat Of SubstitutesIn Porters mod

32、el, substitute products refer to products in other industries. To the economist, a threat of substitutes exists when a products demand is affected by the price change of a substitute product. A products price elasticity is affected by substitute products - as more substitutes bee available, the demand bees more elastic since customers have more alternatives. A close substitute product constrains the ability of firms in an industry to raise prices.The petition engendered by a Threat of Substitute es from products outside the industry. The price of aluminum beverage can