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Good Morning,
Hope your well?
Can you please clarify what model will be used. Will it depend on the nature of the scenario or what comes to my mind straight away is Porters Five forces as the scenari states there are new entrants?
Also will value chain be used in a competitive model question?
5 forces certainly helps with the competitive environment. Value chain is of little help with competition as it concentrated on examining how profits are generated (value added) by the business, not competitors.
Hi Thanks for your help above.
The scenario mentions a whole section on compeititors
But at the same time it takes about the economy, recession etc, I am confused to which model to use, PEST or 5 forces. I mean, it seems clear to use 5 forces but then how can one bring in the points of recession, and exchange rates
We,, recession means static markets (or declining) and this usually increases competition because everyone wants their revenue to increase, but in a flat market they would therefore have to steal competitors’ market share.
Exchange rates could be relevant if imports (made by a competitor) became cheaper/more expensive.
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