Author: Scientific Strategy

CS-162 Porters Five Forces – Part 02 Threat of Substitutes

Substitute products use different means and technologies to try to solve the same economic need – such as meat vs fish. Substitute products tend to compete through their Horizontal Differentiation. To limit the Threat of Substitutes, companies can increase their Horizontal Differentiation by offering better value through new features or wider product accessibility.

Read More

CS-163 Porters Five Forces – Part 03 Bargaining Power of Buyers

The Bargaining Power of Buyers reflects their ability to put pressure on the sellers by either driving down the price or by driving up the cost-to-serve. Power increases when buyers are price sensitive and have low switching costs. These same factors tend to also reduce the buyer’s own Product Differentiation, driving consolidation within the buyer’s own industry.

Read More