Porter Five Forces Analysis

Topics: Strategic management, Marketing, Management Pages: 49 (7367 words) Published: October 9, 2014
Porter’s Five Forces
Strategy Skills

Team FME
www.free-management-ebooks.com
ISBN 978-1-62620-999-2

Copyright Notice
© www.free-management-ebooks.com 2013. All Rights Reserved
ISBN 978-1-62620-999-2
The material contained within this electronic publication is protected under International and Federal Copyright Laws and treaties, and as such any unauthorized reprint or use of this material is strictly prohibited.

You may not copy, forward, or transfer this publication or any part of it, whether in electronic or printed form, to another person, or entity. Reproduction or translation of any part of this work without the permission of the copyright holder is against the law. Your downloading and use of this eBook requires, and is an indication of, your complete acceptance of these ‘Terms of Use.’

You do not have any right to resell or give away part,
or the whole, of this eBook.

Porter’s Five Forces

Table of Contents
Preface

2

Visit Our Website

3

Introduction

4

Porter’s Five Forces Analysis

6

Competitive Rivalry

11

Threat of New Entrants

18

Threat of Substitutes

20

Bargaining Power of Suppliers

23

Bargaining Power of Customers

25

Summary

28

Other Free Resources

30

References

31

ISBN 978-1-62620-999-2 © www.free-management-ebooks.com

1

Porter’s Five Forces

Preface
This eBook describes Porter’s Five Forces Framework, a technique that provides a model for industry analysis and business strategy development.
You will learn:
●●

The five key factors the model uses to identify and evaluate potential opportunities and risks

●●

The importance of defining your market accurately and how this can affect the usefulness of the results you obtain

●●

How to measure competitive rivalry using the Concentration Ratio and the Herfindahl–Hirschman Index

●●

How the availability of close substitute products can make an industry more competitive and decrease profit potential for the firms in the industry

●●

The limitations of this model, which was developed in an environment quite different to the one organizations find themselves operating in today

ISBN 978-1-62620-999-2 © www.free-management-ebooks.com

2

Porter’s Five Forces

Visit Our Website
More free management eBooks along with a series of essential templates and checklists for managers are all available to download free of charge to your computer, iPad, or Amazon Kindle.
We are adding new titles every month, so don’t forget to check our website regularly for the latest releases.
Visit http://www.free-management-ebooks.com

ISBN 978-1-62620-999-2 © www.free-management-ebooks.com

3

Porter’s Five Forces

Introduction
Today’s organizations find themselves operating in an environment that is changing faster than ever before. The process of analyzing the implications of these changes and modifying the way that the organization reacts to them is known as business strategy. ‘Strategy is the direction and scope of an organization over the long term, which achieves advantage in a changing environment through its configuration of resources and competences’ Johnson et al. (2009). While your role as a manager is unlikely to require you to make decisions at the strategic level, you may be asked to contribute your expertise to meetings where strategic concerns are being discussed. You may also be asked to comment on pilot schemes, presentations, reports, or statistics that will affect future strategy.

Presentations
Pilot Schemes

Meetings

Reports

How you
participate in
strategy

Statistics

Whether you work in a large multinational corporation or a small organization, a good understanding of the appropriate business analysis techniques and terminology will help you to contribute to the strategic decision-making processes.

ISBN 978-1-62620-999-2 © www.free-management-ebooks.com

4

Porter’s Five Forces...

References: Aguilar F.J. (1967), Scanning the Business Environment, Macmillan.
Cadle, J., Paul, D. and Turner, P. (2010), Business Analysis Techniques, 72 Essential Tools for
Success, BCS The Chartered Institute for IT.
Johnson, G., Whittington, R. and Scholes, K. (2009), Exploring Corporate Strategy with
MyStrategyLab, Financial Times/Prentice Hall.
Kotler, P., Keller, K.L., Brady, M., Goodman, M., and Hansen, T. (2009), Marketing Management, Pearson Education.
McDonald, M. and Wilson, H. (2011), Marketing Plans: How to Prepare Them, How to Use
Them, 7th Edition, John Wiley.
ISBN 978-1-62620-999-2 © www.free-management-ebooks.com
31
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Porters 5 Forces Essay
  • Five Forces Model and Information Systems Business Theory Essay
  • Apple Firm Strategy Analysis – Gautam Thoppey Sudhakar Essay
  • Beyond Porter Five Forces Essay
  • Porters five Forces and Ryanair Essay
  • Porter five forces Essay
  • Porter Five Forces 2 Essay
  • Mcdonalds Porters Five Forces Model Essay

Become a StudyMode Member

Sign Up - It's Free