Industries where products are commodities e. For example, if the price of coffee rises substantially, a coffee drinker may switch over to a beverage like tea.
The presence of substitute products can lower industry attractiveness and profitability because they limit price levels. The cost of items bought from suppliers e. Many players of about the same size; there is no dominant firm Little differentiation between competitors products and services A mature industry with very little growth; companies can only grow by stealing customers away from competitors.
Access to industry distribution channels v. When barriers to leaving an industry are high e. There are undifferentiated, highly valued products. The relative price and performance of substitutes iii.
Here are a few reasons that customers might have power: There are few dominant buyers and many sellers in the industry. The structure of industry costs: Suppliers are the businesses that supply materials and other products into the industry.
Here are a few factors that can affect the threat of substitutes: There are many buyers and few dominant suppliers.
Highly competitive industries generally earn low returns because the cost of competition is high. Purchases large volumes Switching to another competitive product is simple The product is not extremely important to buyers; they can do without the product for a period of time Customers are price sensitive Availability of Substitutes - What is the likelihood that someone will switch to a competitive product or service?
When competitors are pursuing aggressive growth strategies, rivalry is more intense. The likelihood of retaliation from existing industry players b Threat of Substitutes: The intensity of rivalry between competitors in an industry will depend on: If substitutes are similar, it can be viewed in the same light as a new entrant.
Suppliers threaten to integrate forward into the industry e. Buyers threaten to integrate backward into the industry. The structure of competition: The industry is not a key supplying group for buyers.
The bargaining power of suppliers will be high when: Buyers do not threaten to integrate backwards into supply. Rivalry is reduced where buyers have high switching costs-i.
Competitive Rivalry - This describes the intensity of competition between existing firms in an industry. The main issue is the similarity of substitutes.Competition in the Indian BPO Industry Porter's five forces.
1. Low Supplier power 2. Medium buyers power 3. High competition 4. Medium threat of new entry Context 30% of global offshoring market million employee (50% younger than 25 years) Cost efficiency Started in the 90's Specialization --> increase of number of large companies.
Global Business Process Outsourcing (BPO) Strategic Business Report WNS Global Services (India) Trade-off between Quality and Cost Warrants Revamp of the Global BPO Industry.
Recruitment Industry in Canada – Porter's Five Forces Strategy Analysis. ID: C.3 Competitive Rivalry in the Industry C.4 Threat of New Entrants C.5 Threat of Substitutes D. Conclusion E. Glossary of Terms Employment Services - Global Strategic Business ReportPrice: € Porters Five Forces analysis for IT industry Wipro Technologies is a global information technology (IT) services company.
It provides custom application design and development, IT consulting, systems integration, technology infrastructure out sourcing, software products and BPO services. Business process outsourcing (BPO) Toronto/ Hong Kong June 12, Audience Porter 5 Forces BPO providers India, China, Eastern Europe Potential Entrants Threat of new entrants (captives, • Financial services as an industry, accounts for close to 50% of outsourcing volume.
analysis of five competitive forces (rivals, new entrants, suppliers, buyers, and substitute products) and their impact and strategic implications on the organiza- tion and the industry as a whole.Download