It's about enterprise, Summaries of Law

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ENTREPRENEURIALS IDEAS

ESSENTIALS IN ENTREPRENEUR’S

OPPORTUNITY SEEKING

SOURCES OF OPPORTUNITIES

ENTREPRENEURSHIP

Q1 Week 4:

Recognize a Potential Market

FIX ME

Direction: Arrange the scrambled letters to form a correct word.

1. PSIERSPLU

2. NISSUBES

3. PECITIONMTO

4. VICESER

5. SUTEMOSRC

FORCES OF COMPETITION

MODEL

It is also known as the “five forces of competition”. An industry

environment is a competitive environment. Regardless of what product or

services you have, competition is always present.

Competition- it is the act or process of trying to get or win something.

1.BUYER

The buyers are the ones that pay cash in exchange for your goods and

services. One example is the influence of the price or in the bargaining

strategy. The buyer has a strong and magnified bargaining power.

THE THREAT OF ITS BARGAINING POWER WILL BE

LESS IF THE FOLLOWING FACTORS ARE NOTICED:

a. There are several suppliers available in the market.

b. The buyer has the potential for backward integration

c. The cost of switching the supplier cost is minimal.

d. The product represents a high percentage of the buyer’s cost.

e. The buyer purchases large portions of the seller’s product or services.

3.RIVALRY AMONG EXISTING

FIRMS

Rivalry is a state or situation wherein business organizations are competing

with each other in a particular market. For example, it depends on the

marketing strategy of your competitor, like giving freebies and special

offers.

The intensity of rivalry among existing firms is characterized to the

following factors:

a. Diversity of rivals

B. Number of competing firms

C. Characteristics of the products or services

D. Increased capacity-

E. Amount of fixed costs-

F. Rate of industry growth-

A substitute product can give a big threat in the industry environment if the

following factors are noticed.

A. Switching cost is low

B. Preferences and tastes of the customers easily change

C. Product differentiation is highly noticeable

D. The quality of substitute products dramatically improves

E. The price of substitute product is substantially lower

SUPPLIERS

The Suppliers are the one that provide something that is needed in

business operations such as office supplies and equipment. In an

example where supplies and services being offered is unstable the

intensity of the threat is strong in this kind of the competitive force

in the industry.

This can be noticed if there is the presence of the following factors:

a.The supplier has the ability for forward integration

b.Suppliers in the industry are few, but the sales volume is

high.

c.Substitute products are not readily available in the market.

d.The switching cost is very high.

e.The product or service is unique.