Porter's 5 Forces

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Introduction

Porter's 5 forces analysis is a framework for industry analysis and business strategy development developed by Michael E. Porter in 1979 of Harvard Business School. It uses concepts developed in Industrial Organization (IO) economics to derive 5 forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace. Strategy consultants use Porter's five forces framework when making a qualitative evaluation of a firm's strategic position. The framework is textbook material for modern business studies and therefore widely known. Porter's Five Forces include three forces from 'horizontal' competition: threat of substitute...... Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. Our primary objective is to analyze the Telecommunication industry of Sri lanka using Porter’s Five forces frame work.. In this report we try to discuss about the Porter’s Five forces ,taking each of them individually and come up with its interrelationship with the existing Telecommunication industry. Nowadays in Sri lanka, Telecommunication is an industry which has a rapid growth with the time. As there are number of competitors competing with each other to get the attraction of the customers ,we can have a satisfactory service which can fulfill our desires. The basic concepts of Porter’s rule clearly defines the main roles of a particular competitor which tries to survive in the industry...
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