Answer to Question #242548 in Management for ndivho

Question

 What are the FIVE competitive forces in an industry? How have these forces affected competition in Higher education?

Answer 1

The five competitive forces in an industry include threat of substitute products, threat of new entrants, customers' bargaining power and threats from competitors. Knowledge of these underlying sources of competitive pressure provides the groundwork for a strategic agenda of action. They highlight the critical strengths and weaknesses of the company, animate the positioning of the company in its industry, clarify the areas where strategic changes may yield the greatest payoff, and highlight the places where industry trends promise to hold the greatest significance as either opportunities or threats. Students are increasingly approaching education in a consumer frame of mind. That translates into grade inflation and greater accommodation of special needs. Additionally, price pressure is international, and students are shopping for value– commentary is bubbling up in student blogs that price is a consideration.