The threat of substitute products or services relates to the possibility that

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The third strategy is targeting . This involves segmenting the market and targeting a specific group of customers with particular needs. By focusing on a niche market, a company can tailor its products and services to meet the specific needs and desires of that target group. This strategy allows it to compete more effectively in a smaller, more specialized market.

These three competitive strategies proposed by Michael Porter can be applied individually or combined, depending on the nature of the business and the established goals.

Unraveling Michael Porter's 5 Competitive Forces: The Key to Business Success
Michael Porter's five competitive forces analysis is a fundamental tool in the field of strategic marketing . These forces allow us to evaluate the level of competition and the potential profitability of a particular market or industry.

The five forces referred to are: the bargaining power of suppliers , the bargaining power of customers , the threat of new competitors , the threat of substitute products or services , and rivalry among existing hong kong telegram number competitors .

Supplier bargaining power refers to the ability of suppliers to influence prices and terms of supply. If suppliers are few and dominant, they can impose unfavorable terms on firms.

On the other hand, customer bargaining power relates to the ability of customers to influence prices and purchasing conditions. If customers have many options and can easily switch suppliers, they will have greater bargaining power.

The threat of new entrants refers to the possibility of new entrants entering the market and increasing competition. If barriers to entry are high and there are strong brand loyalties, the threat of new entrants will be low.



We hope you found this summary of the essence of competitive success according to Michael Porter interesting and useful!

It is always important to understand the strategies and tools that allow us to stand out in an increasingly competitive market. Remember to apply these concepts to your digital marketing strategy to achieve the desired success.