Porter's Five Forces Model. Michael Porter's famous Five Forces of Competitive Position model provides a simple perspective for assessing and analysing.

Slides:

Advertisements

Similar presentations

Risk Management and Strategic Planning

Advertisements

Who is more competitive? Why? What makes them competitive?

Unit 5 The External Environment: Competition

Slide 4.1 Boddy et al., Managing Information Systems, 3 rd Edition, © Pearson Education Limited 2009 Using IS to reinvent strategy – Ch. 4 Boddy et al.

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-1.

External Analysis: The Identification of Industry Opportunities and Threats Porter, Five Forces and Industry Cycles.

Preview: Environmental Analysis 4 PEST Analysis 4 Industry & Market 4 Porter’s Five Forces Model 4 Generic Strategies 4 Environmental Analysis Overview.

A Framework for Industry Analysis

Porter’s model of 5 competitive forces is one of the most often

Industry & Competitive Analysis

COMPETITIVE STRATEGY - Dolly Dhamodiwala.

1 Strategic Elements of Competitive Advantage Global Marketing Chapter 16.

STRATEGIC MANAGEMENT Alex Miller THIRD EDITION

NBS Strategic Management Division 2004/5 1 SM352 Strategy External Analysis 3 Near Environment.

The Environment Macro-environment Micro-environment

Competition. Direct Competitors - Firms likely to gain or lose a substantial share of customers from each other over time because they serve the same.

The Strategic and Operational Planning Process

Strategic Elements of Competitive Advantage

External Analysis. Introduction  Internal analysis helps to identify the core competences of the business, while external analysis, particularly of the.

Chapter 2 Learning Objectives

CHAPTER 5: Category Attractiveness Analysis

The Global Pharmaceutical Industry

Corporate objectives and strategy TOPIC 4.1. An aim is what the business intends to do in the long term It could also be regarded as purpose of the business.

The Marketing Environment and Competitor Analysis

External Environment External environments are uncontrollable, multifaceted. They frame your firm’s opps/threats, your strategic options. You must understand.

REDHAT: Identifying Competitive Advantage and Revenue Streams.

Copyright © 2001 Houghton Mifflin Company. All rights reserved. Chapter 3 External Analysis: The Identification of Industry Opportunities and Threats Strategic.

Marketing Marketing Planning

CISB444 - Strategic Information Systems Planning

Strategy Formulation and Implementation

1 UNIT 7: STRATEGIC ANALYSIS: INDUSTRY, COMPETITORS, CUSTOMERS.

3. Competitive Forces Model Companies must contend with five competitive forces which you need to analyse (Figure 4-6) : 1Threat of new entrants 2Bargaining.

Chapters Four & Five Identifying & Analyzing Attractive Markets.

Learning Objectives To learn to identify the different types of environments that affect a firm To learn to identify the different types of environments.

Business Driven Technology Unit 1

© 2003 Pearson Education Canada Inc.

PESTLE vs. SWOT In contrast to a SWOT, PESTLE encourages you to think about the wider environment and what might be happening now and in the.

Classic strategic management Statement of firm’s mission Elaboration of goals to meet the mission Evaluation of competitive environment of the firm Audit.

1 Chapter 5 Defining Service Strategies 1 Chapter 5 DEFINING SERVICE STRATEGIES McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.

External Environment Analysis STRATEGY Environment Firm External analysis searches for conditions and trends that could affect the success of the firm.

The Entrepreneurial Process: Model of Competitive Forces Patterns of Entrepreneurship Analytical Tools.

Management in Action: Book Summary Team #2 Cynthia Ceniceros, Russell Johnson, Peyton Kampas, Ben Griffin.

Porter 5+ Force Model Suppliers Buyers Potential Entrants Substitutes The Industry Rivalry among existing firms Threat of new entrants Threat of substitute.

Starbucks: Strategies to Sustain Competitive Advantage

Porter’s five forces Corporate strategy Philip Allan Publishers © 2016.

Module 10 Competitive Environment. Industry Analysis – Forces Influencing Competition Industry – group of firms that produce products that are close substitutes.

Strategic ManagementEnvironmental Scanning, Corporate & Business Strategy 1 Session 4: Today’s agenda  Put directional and business strategy in context.

Theories on Strategy IT & Business Models Chp. 3.

1 4.6 The relationship between businesses and the competitive environment.

STRATEGIC MANAGEMENT II Porter’s five forces module.

Industry Analysis/Mkt Definition Analysis of customers, competitors and industry are interdependent. Require balance between identifying too many and too.

Strategic Elements of Competitive Advantage Chapter 10 Matakuliah: J0474 International Marketing Tahun : 2009.

MANAGING INDUSTRY COMPETITION.  The focal firm’s performance critically depends on the degree of competitiveness of the five forces within an industry.

F Designed to give you knowledge and application of: Section B: Key environmental influences & constraints on business & accounting B1. Political.

Porter’s Five Forces Model

The Entrepreneurial Process: Model of Competitive Forces

External Analysis: The Identification of Industry Opportunities and Threats Industry structure and Globalisation.

Strategic Charles W. L. Hill Management Gareth R. Jones

D39BU – Business Management in the Built Environment

8 Strategic Management Digital Business Strategies: Leveraging Internet and E-business Capabilities.

The Marketing Environment and Competitor Analysis

Strategic Management B O S.

Who is more competitive? Why?

Strategic Alignment IST 297A School of Information Sciences

Porters Five Forces.

External Diagnostic Individual Assignment Templates Hilti

Strategic Analysis.

Strategy and Technology: The Five Forces

Strategic Analysis for Healthcare

Presentation transcript:

Porter's Five Forces Model

Michael Porter's famous Five Forces of Competitive Position model provides a simple perspective for assessing and analysing the competitive strength and position of a corporation or business organization. Porter's first book Competitive Strategy (1980), which he wrote in his thirties, became an international best seller, and is considered by many to be a seminal and definitive work on corporate strategy. The book, which has been published in nineteen languages and re-printed approaching sixty times, changed the way business leaders thought and remains a guide of choice for strategic managers the world over.

Porter's Five Forces Existing competitive rivalry between suppliers Threat of new market entrants Bargaining power of buyers Power of suppliers Threat of substitute products (including technology change)

Porter is also known for his simple identification of five generic descriptions of industries: Fragmented (eg, shoe repairs, gift shops) Emerging (eg, space travel) Mature (eg, automotive) Declining (eg, solid fuels) Global (eg, micro-processors)

And Porter is also particularly recognised for his competitive 'diamond' model, used for assessing relative competitive strength of nations, and by implication their industries: Factor Conditions: production factors required for a given industry, eg., skilled labour, logistics and infrastructure. Demand Conditions: extent and nature of demand within the nation concerned for the product or service. Related Industries: the existence, extent and international competitive strength of other industries in the nation concerned that support or assist the industry in question. Corporate Strategy, Structure and Rivalry: the conditions in the home market that affect how corporations are created, managed and grown; the idea being that firms that have to fight hard in their home market are more likely to be able to succeed in international markets.