Ashima Negi is teaching live on Unacademy Plus
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
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
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.
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)