Porter's Five Forces Model Of Business Strategy

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Chapter 9 review: The most important factor of chapter 9 is the break-even analysis. In this chapter, there are two charts showing the break-even points. In a generalized break-even analysis chart, there are two break-even points and in the center of the points remains the profit area. However, in a linear break-even chart, there remains just one break-even point where prior to this point is an operating loss and after the break-even point is a positive operating profit. The break-even points show when an organizations revenue costs and output are equal. In conclusion, managers must be aware of the break-even points of the organization to ensure the organization will be successful. Chapter 10 review: Porter’s Five Forces model of business strategy is the most important concept of chapter 10. Threat of substitutes, threat of entry, power of buyers, power of suppliers, and the intensity of rivalry. Disruptive technology is an important addition to Porter’s model. Threat of substitutes deals with competitive products or services that can pull away customers by offering better prices or better services. The threat of entry entails regulations or highly competitive market in a certain area of products or services. Power of buyers can mean when an organization has reached a…show more content…
Endgame reasoning is looking at the organizations actions and the reactions of competitors and predicting the outcome. The point of using endgame reasoning is to gain understanding of the consequences of ones’ actions. Any organization that wishes to do great in business must spend time and much thought to both your organization and the competitors. One must realize their organizations business moves will provoke a response from competitors. Endgame reasoning is also a great concept to use in ones’ own personal
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