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Dear Sir , I am having difficulty to understand the term of the questions which ask the students to
“Assess the industry environment through porters analysis and also recommend a performance measurement with each of the five forces”
I completely understand the five forces fully , but I don’t understand what do we mean by recommending a performance measure with each of the 5 forces ? In to what sense do we have to give a performance measurement with each of the five forces?
So, buyer pressure. If buyers were impatient and we’re showing little loyalty, there would presumably be a high turnover aso custoMerseyside move on to other suppliers. We would rather they didn’t, so a PI could be repeat orders or a measure of customer ‘churn rate’.
Similarly, new entrants. Measure how many new entrants come in and survive for a year. The lower the better.
Similarly for the other forces.
Substitutes could be difficult as,it might take time to recognise that something will be a substitute.
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