January 2015
Beginner
344 pages
7h 36m
English
Content preview from Key Management Models, 3rd Edition
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8
Competitive analysis: Porter’s five forces model
The big picture
Porter’s (1980) competitive analysis identifies five fundamental competitive forces that determine the relative attractiveness of an industry: new entrants, bargaining power of buyers, bargaining power of suppliers, substitute products or services, and rivalry among existing competitors (Figure 8.1). The weaker these forces are, the more attractive an industry or company becomes. Competitive analysis provides an insight into the relationships and dynamics of an industry, and allows a company to make strategic decisions regarding the best defendable and most economically attractive ...
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