Porter's Five Forces Model

BHR 3552 UNIT 2 DB: Porter's five forces model
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Porter’s five forces focus on the strengths and weaknesses that shape an industry including competitive rivalry, which is the main driver of competition, potential new entrants, threat of substitute products, power of suppliers and customers. The purpose of the five force framework is to facilitate strategic industry analysis, since it focuses on the competitive structure of different industries. (Hill & Jones, 2010) If a force is strong, it means that it is unfavorable to the industry, and the management concentrates on the pros and cons of entering the market. Companies can rely on the five force model to choose the most effective strategies based on the competitive landscape.
For instance, in the case of Apple Inc, the competitive rivalry is a strong force, while the bargaining power of suppliers is a weak force. The threat of competitors is strong especially the East Asian rivals producing cheaper alternatives in the Chinese market. Samsung is an innovative company that relies on aggressive ...