It's about enterprise, Summaries of Law

Download It's about enterprise and more Summaries Law in PDF only on Docsity! Review ENTREPRENEURIALS IDEAS ESSENTIALS IN ENTREPRENEUR’S OPPORTUNITY SEEKING SOURCES OF OPPORTUNITIES ENTREPRENEURSHIP Q1 Week 4: Xx 010] a] P4-mro a elk) Aleit) MUI la cole FORCES OF COMPETITION MODEL It is also known as the “five forces of competition”. An industry environment is a competitive environment. Regardless of what product or services you have, competition is always present. Competition- it is the act or process of trying to get or win something. For example, the prices are lower when there is a competition among the stores. These are the five forces competing within the industry: Buyers Potential new entrants Rivalry among existing firms Substitute products Supplier 1.BUYER The buyers are the ones that pay cash in exchange for your goods and services. One example is the influence of the price or in the bargaining strategy. The buyer has a strong and magnified bargaining power. 3.RIVALRY AMONG EXISTING FIRMS Rivalry is a state or situation wherein business organizations are competing with each other in a particular market. For example, it depends on the marketing strategy of your competitor, like giving freebies and special offers. The intensity of rivalry among existing firms is characterized to the following factors: a. Diversity of rivals B . Number of competing firms C. Characteristics of the products or services D. Increased capacity- E. Amount of fixed costs- F. Rate of industry growth- 4. SUBSTITUTE PRODUCTS Substitute is one that serves the same purpose as another product in the market. For example, the consumers decide to use margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will gradually switch to margarine.