同济经管 Assessing the Firm's Current Position TONGJI SEM External Analysis Two common methods are Porter's Five-Force Model and Stakeholder Analysis. Porter's Five-Force Model A90 1.Degree of existing rivalry.Determined by number of firms, relative size,degree of differentiation between firms,demand conditions,exit barriers. 2.Threat of potential entrants.Determined by attractiveness of industry,height of entry barriers(e.g.,start-up costs,brand loyalty,regulation,etc.) 3. Bargaining power of suppliers.Determined by number of suppliers and their degree of differentiation,the portion of a firm's inputs obtained from a particular supplier,the portion of a supplier's sales sold to a particular firm,switching costs,and potential for vertical integration. EOUIS 3 3 Assessing the Firm’s Current Position ƒ External Analysis – Two common methods are Porter’s Five-Force Model and Stakeholder Analysis. – Porter’s Five-Force Model 1. Degree of existing rivalry. Determined by number of firms, relative size, degree of differentiation between firms, demand conditions, exit barriers. 2. Threat of potential entrants. Determined by attractiveness of industry, height of entry barriers (e.g., start-up costs, brand loyalty, regulation, etc.) 3. Bargaining power of suppliers. Determined by number of suppliers and their degree of differentiation, the portion of a firm’s inputs obtained from a particular supplier, the portion of a supplier’s sales sold to a particular firm, switching costs, and potential for vertical integration