Suppliers can impact on a business.
You can choose wether or not to stick with your supplier or choose another supplier - this is an example of the micro environment.
Suppliers with unique or products that are scarce - these can push prices, within this you have no control - this is a macro environment
Competitors
Nokia for example - this was the only phone on the market - it was the go to phone
once new competitors developed and marketed better alternatives, Nokia failing to be innovative and therefore get forgotten about.
Distribution
Serving directly or through a distributor - you choose - it is a micro factor.
Online distribution - best known in fashion
the competition - all trying to compete for one customer
fashion - fact moving turn around
marketing - the necessary evil - you do everything you can to sell your product
Porters - The Five Forces Framework
- potential threats
- buyers - can influence the price - bargaining power
- substitutes - are products that perform the same function. if your product can offer a substitute then it delivers the same function, which lacks the business competition.
- suppliers - bargaining power - can push the price up
- competitive rivalry - within the industry
Applying the 5 forces in to your brands
- look at their past profitability - can help predict the future profitability - forecasting industry
- Entry - barriers - make this market unattractive - using a unique example of a USP.
- Rivalry - Primark for example - compete on non-price dimensions.
- Substitutes - improve attractiveness compared to substitutes - better service, more features (example Asos - model features online)
- Buyers - reduce buyer uniqueness (Selfridges - have higher and lower brands/ high street in their store - you get the Selfridges bag to show you shopped from there making it ultimately look expensive).
- - Suppliers reduce supplier uniqueness
No comments:
Post a Comment