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Competitive environment
Students analyse entry threat, buyer power, supplier power, rivalry and substitute threat.
2
Objectives
10
Flashcards
10
Questions
90 min
Study time
AqaA LevelBusinessAnalysing the strategic position of a business
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Syllabus checklist
What you need to know
2 objective pages available
Porter's five forces2 objectives
- Apply Porter's five forces to analyse competitive pressure and profit potential.
- Explain how entry threat, buyer power, supplier power, rivalry and substitute threat can change and shape competitive strategy.
Key terms
financial decision-makingPorter's five forcesPorterfive forcesfinancial decision-making decisionbusiness changebuyer powerrivalrybusiness change decision
Exam tips
- Porter's five forces exam tip 1: Write the method before the answer so the examiner can follow each step. Apply this to apply Porter's five forces to analyse competitive pressure and profit potential..
- Porter's five forces exam tip 2: State the exact concept or formula you are using before substituting values. Apply this to apply Porter's five forces to analyse competitive pressure and profit potential..
Common mistakes
- Porter's five forces common mistake 1: Show the method first, then give the final answer in the required form. Apply this directly to Porter's five forces.
- Porter's five forces common mistake 2: Name the relevant value or feature from the question and explain how it is used. Apply this directly to Porter's five forces.
Practice preview
- What does Porter's five forces model primarily assess?
- In the context of a fictional coffee shop, Brewed Awakenings, which of the following is an example of a barrier to entry?
- If the buyer power increases in the market for Brewed Awakenings, what is the likely effect on the coffee shop's pricing strategy?
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