Sunday, December 9, 2012

Five Forces Model



Force
Wal-Mart Example
Force Strength
Bargaining power of customers
“This item cost to much”
Low
Threat of substitutions
“ I only shop at family own business”
High
Bargaining power of suppliers
“I will go to another retailer who would sell my product at a higher price”
Low
Threat of entrants
“I am going to the new Target, its closer”
Medium
Rivalry
“I will go on the internet, they have bargains that I never see in stores ”
High

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