Making Business Decisions I

Michael Porterís Five Forces Model is a useful tool to aid organizations facing the challenging decision of entering a new industry or industry segment. The Five Forces Model helps determine the relative attractiveness of an industry and includes:

  • Buyer Power
  • Supplier power
  • Threat of substitute products or services
  • Threat of new entrants
  • Rivalry among existing competitors


  • Perform a detailed Porter's Five Forces analysis for The Broadway Cafe.†
  • Be sure to highlight entry barriers, switching costs, and substitute products.
  • Determine which of Porter's Three Generic strategies you will use as you rebuild The Broadway Cafe for the 21st century.

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