View presentation (PDF) - Department of Supply Chain Management
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Porter’s Five Forces –<br />
Threat <strong>of</strong> New Entrants<br />
Factors Influencing the Threat<br />
<strong>of</strong> New Entrants<br />
• Capital markets<br />
• Availability <strong>of</strong> skilled workers<br />
• Access to critical technologies, inputs or distribution<br />
• Product life cycles<br />
• Brand equity/customer loyalty<br />
• Government deregulation<br />
• Risk <strong>of</strong> switching<br />
• Economies <strong>of</strong> scale<br />
Implications: Suppliers may be eager to <strong>of</strong>fer improved terms<br />
to keep new companies from entering the market and new<br />
market entrants may <strong>of</strong>fer improved terms to gain a foothold.<br />
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