For each of Porter’s Five Forces identify and explain how a business may improve its position in the market.

One of porter’s five forces is the barriers to entry of the market, and the firm should try to increase these to strengthen its position. It could do this by introducing new technology, which will require more capital and expertise for new firms to be competitive. The market competition is another on of the five forces, the less competition the more market share the firm will have, it can do this by using predatory pricing strategies to suffocate firms out of the market. It could also have differentiated products, so customers prefer their products. This links to the third of Porter’s five forces which is substitute goods, to strengthen their position the firm should give their product a USP which will keep customers. They should also ensure that their good is more effective than substitute goods. Another one of the Porter’s Five Forces is Supplier Power, if the supplier has the power they can increase prices, reducing gross profit, so the firm should try to avoid this, they should find alternative suppliers they can use as a bargaining tool against current suppliers. The final force in the model is Buyer Power, which needs to be reduced. This can be done by making the firm’s product exclusive, differentiate it so buyers have less choice. They should also try to increase brand identity to reduce the power of buyers.