Thamarai's Blog

Here is the simple graph based on porter's competitive strategy. I am doing a research on various indian software service providers and their competitive strategy to win and execute software projects. I will be soon blogging my findings. Meanwhile, here is the saimple JPEG image that depicts porter's competitive strategy ( Created with free mind )

• The bargaining power of customers
  * buyer concentration to firm concentration ratio
  * bargaining leverage
  * buyer volume
  * buyer switching costs relative to firm switching costs
  * buyer information availability
  * ability to backward integrate
  * availability of existing substitute products
  * buyer price sensitivity
  * price of total purchase

• The bargaining power of suppliers
  * supplier switching costs relative to firm switching costs
  * degree of differentiation of inputs
  * presence of substitute inputs
  * supplier concentration to firm concentration ratio
  * threat of forward integration by suppliers relative to the threat of backward integration by firms
  * cost of inputs relative to selling price of the product
  * importance of volume to supplier

• The threat of new entrants
  * the existence of barriers to entry
  * economies of product differences
  * brand equity
  * switching costs
  * capital requirements
  * access to distribution
  * absolute cost advantages
  * learning curve advantages
  * expected retaliation
  * government policies

• The threat of substitute products
  * buyer propensity to substitute
  * relative price performance of substitutes
  * buyer switching costs
  * perceived level of product differentiation

• The intensity of competitive rivalry
  * power of buyers
  * power of suppliers
  * threat of new entrants
  * threat of substitute products
  * number of competitors
  * rate of industry growth
  * industry overcapacity
  * exit barriers
  * diversity of competitors
  * informational complexity and asymmetry
  * brand equity
  * fixed cost allocation per value added
  
  
  Porter's Competitive Strategy