Michael Porter developed the five forces model. Of the five forces, there were three that had to do with competitive forces and two that had to do with bargaining power forces. what is the primary danger regarding the three competitive forces? A. The danger is that substitutes for your product will be easily available. B. Your organization will be “too big” to manage its supply chain efficiently. C. The danger is that switching costs will be too high relative to competitive force. D. Each of the three competitive forces concerns the danger of customers taking their business elsewhere. E. As strength of the customer loyalty in the industry decreases, the strength of the competitive forces will also decrease.

Loyalty programs such as those run by airlines do not create loyalty and retain customers. Once all competitors offer similar schemes, all that happens is that marketing costs have risen in that industry. Argue for or against the proposition that loyalty programs are effective customer retention strategies. What is the relationship between customer satisfaction and retention? Go online and identify three for-profit companies engaged in values-based retention marketing. What similarities can you find between them? Some customers are inherently not profitable and ‘retain’ because they extract more value from the firm than they provide in terms of revenue, reputation and recommendation. Identify three strategies for addressing this sort of retention ‘problem’. What are the risks of each for the business? Directions and Criteria Question 1 should have a word count of no less than 150 words. Questions 2 & 4 a minimum word count of 100 words. Question 3 should have a minimum of 200 word count and at least one website cited. A total of 550 word count for your submission.