MYTUTOR SUBJECT ANSWERS

527 views

What are Porter's 5 forces and how they help the business?

Power of supplier- How high the supplier's ability is to increase prices, which is determined by how many other companies they supply, as well as the uniqueness of the product. If there are fewer suppliers, then their power is likely to be greater.

Power of buyer-  How high the buyer's ability is to decrease the price paid for a product. This will be influenced by the number of buyers,and the size of the buyer (for example, it would be better to lower the price of a product slightly for one buyer if they were a customer which bought a large quantity of products, than to lose them altogether)

Threat of subsitution- this is how easily customers can find an alternative to your product. If it is easy to substitute your product, then it is easy to lose customers.

Threat of new entry- How easy it is to enter the market in order to compete. If it is easy and cheap to set up a similar business, or if any technology is no longer protected, then it is likely that someone will entre the market.

Competitive rivalry- This measures the number of competitors and also their power and ability. If no other company can make your products in the same way, to the same quality, then you have more control (a good example of this is apple). If competitors have similar products, then pricing may make a customer go elsewhere.

Natalie H. A Level Business Studies tutor, GCSE Business Studies tuto...

2 years ago

Answered by Natalie, an A Level Business Studies tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

8 SUBJECT SPECIALISTS

£20 /hr

Dan G.

Degree: Business Management (With a Year in Industry) (Bachelors) - Exeter University

Subjects offered:Business Studies, Religious Studies+ 2 more

Business Studies
Religious Studies
Philosophy and Ethics
Geography

“The Lesson Experience : My lessons will be highly tailored to the student in question as I respect as a student my self that no two people learn effectively in the exact same way. However consistent features of the lessons will include...”

£20 /hr

Beth B.

Degree: Business and Accounting with Industrial Experience (Bachelors) - Exeter University

Subjects offered:Business Studies, Maths+ 2 more

Business Studies
Maths
Geography
Economics

“Having been a tutor previously at my sixth form, I will try to put all students at ease and make all explanations as understandable as possible.”

MyTutor guarantee

£20 /hr

Matthew M.

Degree: MSci Computer Science (Masters) - Lancaster University

Subjects offered:Business Studies, Maths+ 3 more

Business Studies
Maths
Economics
Computing
-Personal Statements-

“About Matt: I'm Matt and I am a computer science student at Lancaster University. I have often been described as being friendly and hardworking by my friends, family and work colleagues. Prior to University I worked in the industry as...”

About the author

£24 /hr

Natalie H.

Degree: Modern Languages (Bachelors) - Exeter University

Subjects offered:Business Studies, Spanish+ 1 more

Business Studies
Spanish
English

“About Me I'm a student of Modern Languages at the University of Exeter with a strong passion for languages and cultures. I aim to motivate my students through fun, interesting and engaging sessions which are tailored towards the needs...”

You may also like...

Posts by Natalie

What are Porter's 5 forces and how they help the business?

Other A Level Business Studies questions

What is the Triple Bottom line?

What is break even?

Explain what factors will influence a business' choice of supplier

Case Study: PLG Ltd’s financial position is relatively weak. To what extent should this be the most important influence on its promotional mix given its objective of growth

View A Level Business Studies tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok