Introduction
Porter's Five Forces framework aids to explain why different industries are able to sustain different levels of profitability. This model, named after Michael E. Porter (Harvard Professor) was first published in a Harvard Business Review Issue of March 1979. The model is widely used to analyse the industry structure of a firm as well as its corporate strategy. The model identifies and analyses five competitive forces that shape the industry and helps establish the industry's weaknesses and strengths.
Porter identified five undisputable forces that play a part in shaping every market and industry in the world. These forces are frequently used to measure competition attractiveness, intensity and profitability of the industry. …show more content…
Usually, the smaller and more powerful a client base is, the more power the client has on the firm to be able to influence the pricing. Price confidentiality, alternative fee arrangements and price discounting is a strong evidence that clients have a high bargaining power in this industry. Also, the availability of intermediary agents might affect the buyer power for example, an intermediary agent could decide whether or not a particular law firm receives any work from a particular buyer and, if it does, at what cost by way of referral fee or processing fee.
The degree of presence of the below factors will also affect the bargaining power of clients in the legal industry in the present and future market situations.
Factors possibly affecting the bargaining power of buyers PRESENT
FUTURE
Cost of purchases as % of buyer’s total
Porter's Five Forces framework aids to explain why different industries are able to sustain different levels of profitability. This model, named after Michael E. Porter (Harvard Professor) was first published in a Harvard Business Review Issue of March 1979. The model is widely used to analyse the industry structure of a firm as well as its corporate strategy. The model identifies and analyses five competitive forces that shape the industry and helps establish the industry's weaknesses and strengths.
Porter identified five undisputable forces that play a part in shaping every market and industry in the world. These forces are frequently used to measure competition attractiveness, intensity and profitability of the industry. …show more content…
Usually, the smaller and more powerful a client base is, the more power the client has on the firm to be able to influence the pricing. Price confidentiality, alternative fee arrangements and price discounting is a strong evidence that clients have a high bargaining power in this industry. Also, the availability of intermediary agents might affect the buyer power for example, an intermediary agent could decide whether or not a particular law firm receives any work from a particular buyer and, if it does, at what cost by way of referral fee or processing fee.
The degree of presence of the below factors will also affect the bargaining power of clients in the legal industry in the present and future market situations.
Factors possibly affecting the bargaining power of buyers PRESENT
FUTURE
Cost of purchases as % of buyer’s total