Porter's 5 Forces Management Tool
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Threat of New Entrants (Moderate) - New entrants have already begun to flood the market (no K-12) o edX, Coursera, Dabble, Skillshare, Udemy, and Udacity - Capital requirements to finance a non-profit difficult for new entrants o Kahn free to the public, donation financed o Kahn has Google and Bill Gates Foundation funding Bargaining Power of Suppliers (Very Small) - Relatively small, the supplier of the product is Kahn himself - Non-profit donation financed, suppliers include o Google o Bill Gates foundation o Customers o Other donors Threat of Substitutes (Moderate) - “Professor-made” flipped class rooms - Traditional classroom learning - Accredited Institutions Bargaining Power of Buyers (Small) - Kahn is free and provides a means to earn a free education as an alternative to traditional classroom experience - Backed by Google and Bill Gates - Small bargaining power given no requirement to donate and numerous other online sources of knowledge Competitor Rivalry (Very Small) - Industry growth is rapidly rising - No true rivals for the K-12 market - Kahn is free and has the support to remain that way
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The upgraded version of HBS 5 forces model
Transcript of Porter's 5 Forces Management Tool
Threat of New Entrants (Moderate)- New entrants have already begun to flood the market (no K-12)
o edX, Coursera, Dabble, Skillshare, Udemy, and Udacity- Capital requirements to finance a non-profit difficult for new entrants
o Kahn free to the public, donation financedo Kahn has Google and Bill Gates Foundation funding
Bargaining Power of Suppliers (Very Small)- Relatively small, the supplier of the product is Kahn himself- Non-profit donation financed, suppliers include
o Googleo Bill Gates foundationo Customerso Other donors
Threat of Substitutes (Moderate)- “Professor-made” flipped class rooms- Traditional classroom learning- Accredited Institutions
Bargaining Power of Buyers (Small)- Kahn is free and provides a means to earn a free education as an alternative
to traditional classroom experience- Backed by Google and Bill Gates- Small bargaining power given no requirement to donate and numerous other
online sources of knowledge
Competitor Rivalry (Very Small)- Industry growth is rapidly rising - No true rivals for the K-12 market- Kahn is free and has the support to remain that way
