Porter's five forces
What Porter's five forces means in Business A-Level, as defined for AQA.
Definitions of Porter's five forces
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Reference: AQA
The usual frame in which fierce rivalry and powerful buyers squeeze margin, while a credible threat of new entry forces spending on capacity or brand.
A structure for the competition half: rivalry, threat of new entrants, threat of substitutes, buyer power and supplier power.
Topics that use Porter's five forces
- Financial management (AQA A-Level)
- Marketing management (AQA A-Level)
Related terms
- functional interdependence
- application to a named business
- budgets and trade offs
- capacity utilisation
- Cash flow and working capital
- competitive advantage
- Contribution and break-even
- cost leadership
Using Porter's five forces in the exam
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