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Strength And Limitations (In Hindi)
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Limitations on application of 5 force model and core strength of the model.

Ashima Negi is teaching live on Unacademy Plus

Ashima Negi
UGC NET Qualified Assistant Professor; MBA-FINANCE;BBA;NCFM;PGDM;TQM; ISO9000 & QS9000;Assurance;CCIBL; Youtuber studytalkwithashima.

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  1. By:- Assistant Professor(Ms.)Ashima Negi Candidate For Doctorate (Ph.D.) UGC NET-Management. CA(I), MBA Finance, BBA, PGDM-Materials Management, NCFM, TOM & ISO 9000, QS g000 & Assurance, CCIBL


  2. PORTER'S FIVE FORCES MODEL Potential entrants Threat of new entrants Bargaining power of suppliers Industry competitors Suppliers Buyers Rivalry among existing firms Bargaining power of buyers Threat of substitutes Substitute products


  3. STRENGTHS OF FIVE FORCES MODEL: - The model is strong tool for competitive analysis at industry level. . It provides useful input for performing a SWOT analysis.


  4. LIMITATIONS Inside-out strategy is ignored (core competence It does not cope with synergies and interdependencies within the portfolio of large corporations (parenting advantage) . The environments which are characterized by rapid, systemic and radical change require more flexible, dynamic or emergent approaches to strategy formulation (disruptive innovation) . Sometimes it may be possible to create completely n markets instead of selecting from existing ones (blue ocean strategy)