Porter's five forces - activities
Work in groups of about 3 to 4 and complete the following activities:
1. For a manufacturer of e-book readers, place the following eight points onto the five
- Start-up costs are high
- Students have easy, and cheap, access to books: online videos and paper-based learning materials
- Smartphone manufacturers are investing heavily in improved touch screens and e-reader software
- Price comparison websites have increased in number
- Another e-reader manufacturer has signed an exclusive deal with a publishing company
- Two suppliers of e-reader chips have merged
- Encouraged by government subsidies and support, colleges and universities are adapting their resources for e-readers
- Government legislation in the US and Europe encourages capital investment in new technologies by offering subsidies and tax-breaks to new set-ups.
2. Develop marketing strategies for the e-book reader manufacturer to improve its
competitive position in the e-reader market.
Porter's five forces
Which of the following is the force that is influenced by the others in Porter's five forces?