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Porter’s Five Forces – Threat of Substitutes EXAMPLE Original Product/Service • Paper grocery sacks • Airline travel • Printed forms • Steel pipe • Electricity • Grocery stores Substitute Product/Service • Plastic grocery sacks • Video conferencing • Electronic forms • PVC pipe • Co-generated power • Internet Factors Influencing the Threat of Substitutes • relative performance of substitutes • relative price of substitutes • switching costs • buyer propensity to substitute 49
Internal Competition • Higher levels of internal competition increase buyer options and supplier flexibility. Factors Influencing the Market Internal Competition • Speed of industry growth • Capacity utilization • Exit barriers • Product differences • Switching costs • Diversity of competitors 50
Page 1 and 2: The Value of Supply Strategy
Page 3 and 4: Traditional Focus is Here Company
Page 5 and 6: Business Intelligence Impact Suppli
Page 7 and 8: Strategic Sourcing follows a rigoro
Page 9 and 10: Global Enterprise Category Team Ope
Page 11 and 12: Category Plan Development Future St
Page 13 and 14: The main outputs drive category str
Page 15 and 16: Michigan State U. Benchmarking Stud
Page 17 and 18: There are many sources of market an
Page 19 and 20: Choosing Analysis Tools
Page 21 and 22: Best Practices Approach Gather Data
Page 23 and 24: Market Analysis Tools • Convertin
Page 25 and 26: Supplier Analysis • What the tool
Page 27 and 28: SWOT Analysis • Broad customer ba
Page 29 and 30: Sample Value Chain Analysis Materia
Page 31 and 32: Our Challenge - Defining Categories
Page 33 and 34: Look for Patterns Characteristics o
Page 35 and 36: Common Areas of Risk • Product qu
Page 37 and 38: Supplier Risk Example The following
Page 39 and 40: Risk Reduction by Shifting Supply f
Page 41 and 42: Porter’s Five Forces Model • Da
Page 43 and 44: Porter’s Five Forces - Supplier B
Page 45 and 46: Criticality to Buyers Factors Influ
Page 47: Porter’s Five Forces - Threat of
Page 51 and 52: Balance of Power as Input to Supply
Page 53 and 54: Preparing Documentation
Page 55 and 56: Category Name Overview Owner: Globa
Page 57 and 58: Market, Technology, and Competitive

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