Porters Five Forces Application

Topics: Porter five forces analysis, Management, Complementors Pages: 2 (272 words) Published: June 12, 2011
Apply Porter's Five Forces Model to easyJet

This task asks you to apply Porter's Five Forces model to analyse the competitive environment of easyJet.

Instructions: On the next page you will find a template of Porter’s Five Forces model. Please complete this template (either online or print off and fill in by hand) in relation to the competitive environment of easyJet. Below, you will find some guidance to assist your analysis.

It can be challenging to find sufficient breadth of information about environment in which the organisation operates simply by looking at its website - you may also find it useful to consider other sources of background information such as undertaking a “Google search” of the low cost airline sector or using for example Mintel industry reports. When examining corporate websites, searching under headings such as "About us" or "Corporate Information can provide valuable information.

When applying this model, it is important to remember that it examines the five factors (known as “forces”) which interact to form the competitive environment in which a business operates. The forces are:

• rivalry among existing firms in the market
• the threat of new entrants (that is new sellers) coming into the market • the power of suppliers on the sellers
• the power of buyers or customers
• the threat of substitute products or services becoming available

According to Porter, the degree of competition is determined by the relative strengths of these forces.

Rivalry among Industry Competitors

Rivalry among Industry Competitors

Porter’s 5 Forces Model (Porter, 1980, adapted from The Open University)

Threat of Substitute Products or Services

Bargaining Power of Suppliers

Bargaining Power of Buyers
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