360彩票|购彩大厅下载

                                    
                                    

                                      Porter Five Forces - Competitive Analysis

                                      And the Threat of Substitute Products

                                      Content rich web pages, including free porters five forces template available in PDF or MS Word. Plus handy hints and tips for leaders. Quick link to porters five forces template

                                       

                                       

                                      Introduction to the Threat of Substitute Products

                                      An analysis of the threat of substitute products will identify the likelihood that customers to your industry will switch to purchasing an alternative product from outside your industry.

                                      You will find that the impact on your industry will vary depending on the take up rate of the substitute products. A substitute product can decimate an industry overnight or may have little to no long term impact.

                                       

                                      Analyzing the threat of Substitute Products

                                      To analyze the threat of Substitute Products, you will need to consider the following factors,


                                      Or Click here to view and download a free Porter Five Forces Template

                                       


                                      Analysis Criteria

                                      Description

                                      The relative price performance of substitutes
                                       

                                      Refers to the cost effectiveness of the substitute products, (Total supply chain costs)

                                      Alternative products that provide overall savings to your customers, without impacting the quality of your customer’s products or services are more likely to be viewed favorably for adoption.

                                      Switching costs

                                      Refers to any cost incurred by your customers to switch to an alternative product

                                      Does your customer incur any costs to switch to a substitute product?

                                      These costs could be legal review of new contracts, change in spare parts and change in ordering systems. These may also be intangible costs such as risk.

                                      Buyer propensity to substitute

                                      Refers to your customers loyalty to your product or service

                                      How do your customers react to substitutes, do they trial them or are they loyal to your industry?

                                      It would also pay to identify the things that need to change for your customers to change their propensity to trial substitute products.

                                       

                                      Sample Porter Five Forces Template, Analysis of the Threat of Substitute Products

                                       

                                      Analysis Criteria

                                      Risk Rating

                                      High

                                      Medium

                                      Low

                                      The relative price performance of substitutes

                                       

                                       

                                       

                                      Switching Costs

                                       

                                       

                                       

                                      Buyer propensity to substitute

                                       

                                       

                                       

                                      Overall Risk Rating

                                       

                                       

                                       

                                       

                                      Scroll down for another sample porter five forces template

                                       

                                      Alternative Template for the Threat of substitute products

                                      The following free strategic planning template can be used to determine if each of the factors that affect the threat of substitute products has a positive or negative risk.

                                      You can then give an overall rating for this force.

                                       

                                      The threat of substitute products

                                      Comments on the threat of substitute products

                                      Rating

                                      The relative price performance of substitutes

                                       

                                       

                                      Switching Costs

                                       

                                       

                                      Buyer propensity to substitute

                                       

                                       

                                      The threat of new entrants overall rating

                                       

                                       

                                      Porter Model Templates from What Makes a Good Leader, View and download our Porters Five Forces Template Here

                                       

                                      After completing your Analysis

                                      After completing your analysis you should transfer the key highlights to your SWOT analysis. Generally, you only need to add high level commentary to your SWOT.

                                      Given that Porters five forces is an industry analysis technique you will only need to update the opportunities and threats in your SWOT analysis.

                                      Why not take 5 minutes to learn how to use all five forces in the porter model to ensure you can analyze and understand the nature of competition in your industry.

                                       

                                      Thank you for visiting our Porter five forces section

                                       

                                       

                                       

                                      Thank you for visiting

                                       



                                      NEW Follow us on Linkedin, Facebook

                                       

                                      Click here to get your SWOT how to guide, including three free templates

                                       




                                                                        
                                                                        

                                                                          search for

                                                                          Blog

                                                                          education

                                                                          news

                                                                          aviation

                                                                          Real estate

                                                                          Information

                                                                          game

                                                                          society