Competition: the competitive forces

List Porter's five competitive forces and explain in one sentence what each analyses.

Indicate which of Porter's forces corresponds to each event: a new franchise opens opposite, the main supplier increases its prices by 20%, customers can switch brands at no cost, and a product appears that fulfills the same need in a different way.

Barriers to entry make it difficult for new competitors to arrive. Give an example of a barrier of each type (capital required, licences or regulation, an established brand, access to distribution channels) and name a sector where barriers barely exist.

A local coffee shop has three others on the same street. Analyse two of Porter's forces in its case: rivalry among existing competitors and the threat of new entrants (is it easy to open another coffee shop?), and suggest a way to differentiate itself.

Barriers to entry (economies of scale, established brands, regulation, capital requirements) protect incumbent firms. Give an example of each type of barrier and explain what happens to rivalry and pricing when barriers are low.

Explain when customers have a lot of bargaining power (there are many suppliers, switching supplier is free, they buy large volumes) with the example of a printing house that bills 70% to a single large customer.

A speciality coffee shop relies on a single coffee roaster that raises its prices every year. Explain which force it is suffering from, why the supplier has so much power in this case, and two strategies to reduce that dependency.

A metalworking workshop manufactures parts almost exclusively for a large household appliance plant. Analyse the bargaining power of that customer, the risks of the dependence (price pressure, losing the contract) and two strategies to reduce it.

Explain what a substitute product is (it covers the same need in another way) and identify the substitutes for the medium-distance train and for a night at the cinema.

A cinema chain does not only compete with other cinemas. Identify its substitute products (streaming platforms, video games, other leisure options) and propose two strategies to make the cinema experience hard to substitute.

A local food delivery platform competes with two international giants. Analyse its situation focusing on customer bargaining power (restaurants and end users) and substitutes (collecting food in person, cooking), and propose two realistic defences for the small platform.