This force determines how easy or not it is to enter a particular industry. Porter, M. The model suggests that in order to develop effective organizational strategiesmanagers must understand and react to those external forces within an industry that determine an organization's level of competitiveness within an industry.
You must be on the cutting edge of new technologies and innovative business processes.
Porter's Five Forces Factors. Marci Martin With an Associate's Degree in Business Management and nearly twenty years in senior management positions, Marci brings a real life perspective to her articles about business and leadership. Depending on the industry dynamics, suppliers may be in the position to dictate terms, set prices and determine availability timelines.
Bargaining power of customers: Under Armour's customers include both wholesale customers as well as end customers. Your rating is more than welcome or share this article via Social media!
Competitive rivalry This force examines how intense the competition currently is in the marketplace, which is determined by the number of existing competitors and what each can do.
Threat of new entry.