What is Porter's 5 Forces Analysis?

[samiaseo222]

As the name suggests, the Porter 5 Forces concept was developed by Michael E. Porter. He is a well-known economist, researcher, author of numerous specialized books, consultant, lecturer and professor. He has taught at Harvard Business School and has developed numerous theories and concepts of strategy, addressing problems related to business, economy and society, such as market competition and business strategy, economic development, environment and health care.

When to apply Porter's 5 forces analysis?

It is worth applying Porter's 5 forces when philippine cp number considering entering a given market. This method is used to assess the attractiveness of a sector and is based on 5 different factors, related to the environment in which the company operates, namely:



bargaining power of suppliers,
bargaining power of buyers,
the intensity of the competitive struggle within the sector,
the threat of new producers,
the threat of substitutes.
Porter's 5 forces - an example

To better illustrate Porter's 5 forces method, the example of an electronics company that manufactures personal computers will be used.