Business Part 11: Porter’s Five Forces

  • 投稿カテゴリー:Business

Warm Up

—- **FOR NEW STUDENTS**————————————————

  1. What industry do you work in and what is your role?
  2. What are your responsibilities in your role/position?
  3. Can you describe to me the function of your workplace/company?
  4. How many departments, how many offices. National or International?
  5. What are the Minimum requirements for employment i.e Education or Experience?
  6. How many opportunities are there to ‘move up the ladder’?
  7. What is the process for changing job roles i.e Interview? Test?

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General discussion about your workweek:

  1. Current projects? Deadlines? Opportunities?
  2. Anything of interest happening?

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Listening

Before the video: Teachers will read the following questions aloud, please prepare for listening!
After the video: Did you get it? If not, please tell your teacher specifically which part you didn’t understand. Let’s review the video again 🙂
  1. ?
  2. ?
  3. ?

Key Words and Phrases

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Discussion

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00:00 Your ability to make a good profit in business depends on the strength of your
00:11 position in the market. For instance are there any competitors offering similar
00:16 products? Is it easy for other organizations to enter your market if
00:21 they see you’re making a profit? Or can customers force you to lower your prices?
00:25 If you don’t think about your position carefully, you can easily find that
00:30 you’re working hard and still struggling to stay afloat. This is where to like
00:36 Porter’s Five Forces is useful. It helps you discover who has the most power in a
00:41 given situation. It can also show you if a product or service is likely to
00:46 be profitable. The tool assumes that there are five forces that determine
00:50 competitive power in a business situation. These forces are supplier
00:55 power, buyer power, competitive rivalry, threat of substitution and threat of new entry.
01:02 Any of them can work for or against you so it’s important to understand them. To
01:08 use Porter’s Five Forces as an analysis tool you need to look at each one
01:13 individually. For example, with supplier power you examine how easy it’s going to
01:19 be for your suppliers to drive up prices. if you have several to choose from you can
01:24 switch to a cheaper alternative if prices are too high. But you have fewer
01:30 options if your choice is limited, which means that individual suppliers hold
01:34 more power over you. Next look at buyer power. How easy is it for your customers
01:40 to drive down prices. If there are only a handful of them in your market they have
01:45 control. If there are many more
01:49 your power increases. Then consider competitive rivalry. How many competitors
01:54 do you have? Are their products or services as good as yours? If so how can
01:59 you establish a strong advantage over them? Next, there is the threat of
02:04 substitution. How easy is it for your customers to find another way to get what you’re
02:10 offering? The easier it is, the less power you have. Finally, identify how
02:16 likely it is for competitors to enter the market. The easier it is for them to
02:20 swoop in, the harder it is for you to make a profit.
02:24 Once you’ve completed a Five Forces analysis, you’ll be able to see clearly
02:28 where you’re at risk, so you can overcome any obstacles. And if you’re thinking
02:34 about entering a new market, you can see at a glance how profitable you’re likely
02:38 to be. You can find out more about Porter’s Five Forces, including how to
02:44 carry out an in-depth analysis, in the article that accompanies this video.