Five forces analysis is an approach to understanding market dynamics using the interaction of five key market forces. The market forces are the bargaining power of buyers, the bargaining power of suppliers, the threat of new entrants, the threat of substitutes, and the degree of competitive rivalry. The aim is to understand the profitability of the industry. The significance for buyers is that, by understanding the trends impacting on the market, the buyer can model what is likely to happen in the market. Buyers can also exert influence on a number of the forces, most obviously the bargaining power of buyers, but also the threat of new entrants and the threat of substitutes. See also Market Analysis.
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With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and procurement consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
