PSBS Model…

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In the understanding of Applied Selling, PSBS Model is part of the analysis process. PSBS is basically the short version of “Potential Entrants”, “Suppliers”, “Buyers” and “Substitutes”. This model explains on the connection of the competition in the industry, and shows that the intensity of competition in an industry is not as of co-incidence, but roots as the conditions that occurs in the surroundings. This understanding was explained by Michael Porter, a professor at Harvard Business School, with a leading authority on company’s strategy and competitions.

In the diagram, it is explained that within the industry competitors, there are many factors to be seen about, known as the five factors, including PSBS Model. By looking at the “Potential Entrants” factor, threats of the new entrants are mostly seen; “Suppliers” and “Buyers” factor sees upon the bargaining power and “Substitute” factors looks towards the treat of substitute products or services. All these factors create a rivalry towards existing firms, bringing upon more industry competitors. 

For more details on Applied Selling, please contact:

KIRTI PARKASH

+62 21 8378 3288

kirti.parkash@frontlinerinc.com