Porter 's Five Forces Model Essay

1071 Words Dec 6th, 2014 null Page
Porter’s Five Forces Model is a strategy development tool created Michael Porter to help business leaders develop successful competitive strategies based on several forces present in any given marketplace. Porter’s model rose in prominence to gain industry standard status and has had far reaching influence among business leaders for decades. Despite its overwhelming popularity, does this model stand up to criticism and will it translate sufficiently into international marketplaces as well as it has in the domestic markets? When studying this model in light of those questions, it can be found that the fundamentals that it is built upon are strong and the model is transferrable while still holding to its foundational principles. An examination of the strengths of the model will display its ability to support a competitive strategy even among varying environments.
The basis of Porter’s model is an analysis of market structure and outside factors that influence the competitive environment. The purpose of Porter’s work is to provide business leaders with a framework to determine whether or not they will have a strong competitive advantage when entering a market. While internal organization and management planning is important for any firm embarking on a new venture, Porter developed his model to focus on what he taught to be the key areas outside of an organization that are critical forces for competitive analysis. Porter believed that the internal factors; having a great…

Related Documents