What Does Michael Porter's Five Forces Model Attempt To Explain?

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A good mission statement must be clear and concise, concerned with the organization today, and specific about the products and services offered. List three characteristics of a good Vision statement A good vision statement must be inspiring, challenging, and about excellence. Explain the concept of Blue and Red Ocean strategies to a strategic planner. Blue ocean strategies help discover unchallenged market spaces where competition does not currently occur. Planners use the space to provide new offerings to the market. Red ocean strategies help discover market spaces that are already competitive. Utilizing red and blue ocean strategies assist strategic planners in dominating the markets in which they have an interest. They are also more likely to earn higher …show more content…

Describe each of the five forces. Michael Porter’s Five Forces is a model used to explain how the factors of the industry influence strategies and provide competitive advantages for organizations. The first force, a threat of entry, determines potential new entrants to the industry. This may give existing firms the opportunity to get ahead of potential competitors before they enter the market and create barriers for potential entrants. The rivalry is the second force, which drives organizations’ strategies to imitate current competitors’ strategies. The threat of substitute products is a force that affects the financial strategies of firms. When new entrants develop alternatives to current market products, the current firms must restructure their profit and price-setting plans. The bargaining power of suppliers influences firms to brand their products in an attempt to reduce market competition. The final force of Michael Porter’s model is the bargaining power of buyers. The bargaining power of buyers is the ability for potential buyers to “shop around” for similar products in the market, which opposes the bargaining power of the

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