Competitive Rivalry
Competitive Rivalry refers to _______
the level of competition between existing businesses within the same industry
Threat of New Entrants refers to ______
the risk that new competitors pose to current businesses within the same industry
Bargaining Power of Suppliers refers to ________
how much control a business’s suppliers have over prices, quality, and terms.
Who created the Five Forces Framework?
Micheal Porter
A substitute product meets the customer's needs by _____
performing the same or similar function through different means
2 factors that increase CR
Similarity of Products
Price Competition
Rate of Industry Growth
Advertising and Promoting
True or False: A well-established beverage company faces no threat from the new business because it already has a strong reputation and loyal customers.
False
Effect of BPS on Cal's marketing strategy
Value Differentiation
Name one way to lessen BPB
Product differentiation
Increase switching costs
Improve customer experienceThe threat of substitutes are high when _____
the substitute cost is low
How does CR manifest at Cal's
Competition from other food and beverage manufacturers
Competition through price
Competition through product variety
What is a micro-environment?
Factors outside a business that are closely connected to it and directly affect its ability to serve customers.
When was Cal's founded?
1999
Bargaining Power of Buyers refers to______
the ability buyers have to actively affect a business and pressure it to lower prices, demand improved and innovative quality or services.
When was the Five Forces framework introduced?
1979
2 effects of CR on Cal's marketing strategy
Competitive Pricing
Product Differentiation
Strong Advertising and Promotion
Builds Brand loyalty
Effect of TNE on a business's marketing strategy
Increase in promotional activity
Increase in spending to retain customers
Strengthen brand awareness
Differentiate its products
2 factors that influence BPS ______
Number of Suppliers
Uniqueness
Switching Costs
Industry Importance
2 factors that increase BPB
Customers find better options at another company
Customers attempt to make their own version of the product due to dissatisfaction
Customers are not satisfied with pricing, presentation or quality.
When customers shift from Cal's Foods snack bars to eating fresh fruit and a homemade smoothie, it is considered a high_____
Threat of Substitutes