The Porter's 5 Forces Model

This is the first time I heard this name, Michael E. Porter. He developed the 5 forces model which is a framework for industry analysis and business strategy development These 5 forces are for determining the competitive intensity and therefore attractiveness of a market. A change in any of the forces normally requires a company to re-assess the marketplace.

4 forces, consisting of bargaining power of customers, the bargaining power of suppliers, the threat of new entrants, and the threat of substitute products, combine with other variables to influence a fifth force, the level of competition in an industry, resulting in the intensity of competitive rivalry.

However, some argue that a 6th force, “Relative Power of Other Stakeholder, should be added to Porter’s model to include a variety of stakeholder groups from the task environment, such as governments, local communities, creditors, and shareholders.

I will find his books to fulfill my knowledge about strategies again. I really need to know what he thinks.

Create Date : 17 พฤษภาคม 2550 Last Update : 18 พฤษภาคม 2550 9:47:18 น. Counter : 592 Pageviews.		0 comments
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