Porters Five Forces - 1036 Words

Assignment 1 Describe Porter’s Five–Force model and how it is helpful when developing one’s international strategy. Do you see any limitation to Porter’s modeling techniques? Michael Porter s Five-Force model, as described and illustrated in â€Å"Porter’s Five Forces: A Model for Industry Analysis (Article from QuickMBA.com)†, goes beyond the traditional industry competitive analysis that would just compare Rivals, both current and potential, to include Suppliers and Buyers and also Product or Service Substitutes. I have not yet read Porter’s â€Å"Competitive Strategy† (1980), but understand that it is the definitive work on the introduction of the Porter Five-Force model (1979) and describes how the model can be used as a tool to not only†¦show more content†¦There also may be a timing and applicability challenge given that any of the five forces may change through time because of emergent factors which will require a revalidation of the strategy due to a change in one or more of the five forces. Another limitation on the model may be that Porter’s perspective appears to be at the Industry level. Dr. Aktouf, in his article â€Å"The False Expectations of Michael Porter’s Strategic Management Framework: 04/11/2004† stated that Porter’s work is at the meso-economic level and that the type of business itself is â€Å"kind of a black box†. The model seems to emphasize and evaluate an industry holistically and not on the strengths and weaknesses of individual firms. He concludes that Porter’s model overemphasizes the importance of industry structure as a determinant of company performance and underemphasizes the importance of differences between companies within an industry. However, Dr. Aktouf also commends Porter for going beyond the existing models in 1979 such as the Boston Consulting Group’s portfolio model â€Å"based on an analysis of advantages and disadvantages which limited them to the microeconomic level†. His most serious objection to what is called theShow MoreRelatedPorters Five Forces1364 Words   |  6 PagesIntroduction The porter forces model was first developed in 1979 by Michael .F. Porter of the Harvard as structure for assessing and evaluating the competitive position and power of an organization, the model is grounded on the concept that there are five forces which ascertain the competitive intensity of the market (Porter, 2008). Figure 1.1 shows a diagram of the five forces model, (Flesicher, 2007) Porter’s five forces model is quite useful and it provides a number of benefits , its mostRead MorePorters Five Forces786 Words   |  4 PagesPorters Five Forces Porters Five Forces allowed us to analyse the influences on the industry in which Tesco operates. It highlights where Tesco has developed a competitive edge over its rivals. Potential entrants: Throughout the recession Tesco has continued to invest into expanding the company and developing efficiencies, making it as competitive as ever to defend against the threat of new entrants (Datamonitor, 2010, p. 19). The threat of a new competitor entering this sector is relativelyRead MorePorters Five Forces640 Words   |  3 PagesIn a landmark article published in the March/April 1979 issue of the Harvard Business Review, Michael Porter identified five competitive forces that determine if you should enter a new market segment. The â€Å"Five Forces† are: 1. Intense Rivalry. A category can already have too much competition between aggressive competitors, which can be amplified by high fixed costs or exit barriers or if the current category members have high stakes in staying in the segment. A hyper-competitive environment willRead MorePorters Five Forces3126 Words   |  13 PagesPorter’s Five Forces Model Porters five forces Each element of a Porters five forces model is best considered in the context of other elements in the model. Examples: supplier power is increased if there is a high degree of rivalry between companies trying to obtain the supplies; entry barriers are increased if there is a substitutes threat. A Porter s five forces analysis can be usefully performed alongside SWOT analysis, PESTLE analysis, and other analysis techniques. The next two sectionsRead MoreJetstar - Porters Five Forces689 Words   |  3 PagesPorter’s Five Forces After the analysis of Jetstar’s societal environment with the use of PEST, the Porter’s Five Forces can be used to analyse another aspect of the external environment; the task environment. Porter’s Five Forces is a framework that consists of five competitive forces, threat of entry, power of supplier and buyer, threat of substitution and competitive rivalry. These forces facilitate the analysis of the task environment of an industry or company (Wheelen and Hunger, 2009)Read MorePorters Five Forces : Strategic Forces1373 Words   |  6 PagesPorter’s Five Forces Entrepreneurs who are ready to start their business today might need to take a second and gather industry information in regards to profitability together before taking a plunge into their chosen industry. Professor Michael Porter developed has developed five competitive forces that if applied to the selected industry the framework will determine profitability. Any change among one of the forces will have an impact on the overall profitability of the company. We will describeRead MorePorters Five Forces Analysis1024 Words   |  5 Pagesa methodology called the Porter’s Five Forces Analysis. In his book Competitive Strategy, Harvard professor Michael Porter describes five forces affecting the profitability of companies. These are the five forces he noted: 1. Intensity of rivalry amongst existing competitors 2. Threat of entry by new competitors 3. Pressure from substitute products 4. Bargaining power of buyers (customers) 5. Bargaining power of suppliers These five forces, taken together, give usRead MorePorters Five Forces Model2693 Words   |  11 PagesDescribe and discuss Micheal Porters competitive forces model and how information systems may be used to influence a firms competitive position within its industry. Provide a defensive and an entrepreneurial example of how information technology/systems could be used to influence each of the forces. Porters Five Forces Model Porters Five Forces model is often used as a tool for analyzing industries and competitive structures within them. An industrys profit potential is determined by eitherRead MorePorters Five Forces Example1825 Words   |  8 Pages‘Take an industry of your choice, perhaps one you would like to work for, and assess it in terms of: (a) concentration (b) Porter’s model of five forces. From this analyze one or more of the major competitors in terms of their chosen competitive strategies’ Introduction Since the nineteenth century, ice cream with its beautiful, cold, happy and sweet feeling has been loved by people all around the world. In 2007, data shows that the ice cream consumption in theRead MorePorters Five Forces on Wynn Resorts746 Words   |  3 PagesResorts was granted concession for its land application for 52 acres on Macau’s Cotai Strip (Pearce Robinson, 2013). The remainder of this critical thinking assignment will answer questions concerning this expansion strategy, as well as apply Porter’s Five Forces model to determine whether growth should be pursued at this point. Question 1 Where will the Wynn on the Cortai Strip fit on the Wynn Resorts Ltd. growth and expansion strategy? Is there support to make a significant capital investment in