When it comes to business, Micheal Portal a professor at Harvard Business school shows us five main forces that will either make you destroy your consumer brands. This depends on the steps you take. Let’s see the five forced before we get into other things. Porter’s Five Forces has become a popular tool for most businesses to analyze the competitive environment and business strategy. This in fact can help you do the same enables your customer to get the deal at the most
The first thing that will make or destroy your brand is the direct rivals. Rivals will make a major impact on price. The rivalry itself means competition between businesses on many aspects like Price, Discounts, New Product Launches, Advertisements, etc. Porter explains many ways how companies analyze rivals for consumer brands.
The next force is bargaining power. Consumer brands are based on customers. If you are selling high ticket products, buyer’s negotiation will decrease your margin by a small proportion which will eventually be a lot bigger.
The same goes for the supplier’s bargain power. The number of suppliers in the market also equally affects your consumer brands.
If your industry is easy to do business with, the threat of new entrants might destroy your brand. If not, substitutions of the brand also affect your brand. Read the complete article from Practical Commerce.