ACCA Complete Learning Support

Welcome to ACCA Complete Learning Support. We will study Business and Technology: Organisations, Stakeholders, Environment and Governance, work through an example, and practise using the course's learning material. Independent preparation support for ACCA Complete Learning Support, with original study notes, practice and revision. Certification/qualification requirements remain governed by the relevant professional body. Sign in and use the study header to open your authorised course. Select this published lesson. Start Course Tutor with Auto audio on: it teaches continuously, answers a typed question, then resumes. Industry competition — Porter's five forces. Michael Porter suggested that the profitability of an industry depends on five forces: the threat of new entrants, the bargaining power of suppliers, the bargaining power of customers, the threat of substitutes and the rivalry among existing competitors. Example 3 — Five forces. A new food-delivery app wants to enter a city dominated by two large apps. Reasoning: Threat of new entrants is moderate, because technology is available but network effects and marketing costs are large. Customer bargaining power is high because switching apps is easy. Supplier power, from restaurants, is moderate. Substitutes such as ordering directly or cooking at home are strong. Rivalry is high. Overall, the industry is hard to profit in for a newcomer. Which mistake would change the reasoning in this example? Treating every stakeholder as a key player. Fix: judge power and interest separately and place each stakeholder in one quadrant, with reasons. Listing PESTEL factors without explaining the effect. Fix: after each factor, add one sentence on how it affects the organisation. Ask Course Tutor: please explain this step from the example. Customer bargaining power is high because switching apps is easy. Supplier power, from restaurants, is moderate. Why does it follow? Add what you tried, so the explanation addresses your difficulty. Now try the source practice. Name Porter's five forces. Pause before the answer. The source answer is: Threat of new entrants, supplier power, customer power, threat of substitutes and competitive rivalry. Compare your reasoning as well as the result. If your response differs, return to the worked example and identify the step that needs correction. Explain the key idea in your own words, revisit any mistaken step, then continue to the next lesson. Use Stop to end Course Tutor when you finish.