Porters 5 forces

English: The Home Depot in Knightdale, North C...

English: The Home Depot in Knightdale, North Carolina. (Photo credit: Wikipedia)



new entrants

supplier power

The graph this week displays the 5 forces of porters law. the first force is the threat of new entrants basically means that there are different solutions to entering a new specific market. Example would be that if Home Depot raised prices and another competitor entered in the market then that is a threat of new entrants. Next is Buyer power that is having the ability to have the power to force prices down in tha market to gain more consumers. The threat of substitutes shows that at anytime another product can take over a market. For example Pepsi sells well so does Coke but many choose water over both that is a major substitute. Supplier power consists of having the power to supply a product but at the same time having the ability to negotiate pricing. Last is rivalry which many of us know about and that is basically having competition between the sellers of that industry. Example of this is Lowes and Home depot who has a big rivalry because they are the major players in the industry.


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