Porter’s Five Forces are bargaining power of buyers, bargaining power of suppliers, competitive rivalry, threat of substitution, and threat of new entry. In bargaining power of buyers, business access the ease for buyer to increase the prices, in bargaining power of suppliers, business access the ease for suppliers to increase prices, in competitive rivalry capability, skills, and number of competitors are checked, in threat of substitution, ability of consumers to search other way to fulfill their need are analyzed, and in threat of new entry influence on power because of capability of individuals or other business to enter the market in which other businesses are already established. Business uses Porter’s Five Forces model in order to analyze source and point of power in the business.
Four types of product and market entry strategies are market penetration, product development, market development, and diversification. Market penetration comprises of selling already established product or service in existing marketplace, product development consists of development of new products and services in existing market. Market development is to sell existing products and services in new market, and diversification is development of new product in new market.
Six types of market development strategies are new geographical markets, packaging, dimension of new product, new channels of distribution, new market creation, and segmenting existing customers. Segmenting existing customers is the most risky strategy because in this case customers may feel isolated.
Boston Consulting group matrix consists of four business units, which are dogs, question marks, stars, and cash cows. Dogs are characterized low rate of growth and low market share, where a large amount of cash is not generated and nor used. Question marks have low market share, but grows rapidly, and large amount of cash is used. In stars, market share is large, growth rate is high, and a large amount of cash is consumed. Cash cows are, however, market leaders, have high growth rate, and generation of cash is more than consumption.
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