Porter Five Forces Model

Three steps for using Porter’s Five-Forces Model can reveal whether competition in a given industry is such that the firm can make an acceptable profit or not. They include identifying key elements of each competitive force that impact the firm, evaluating how strong and important each element is for the firm and deciding whether the collective strength of the elements is worth the firm entering or staying out of the industry.

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

Porter’s Five Forces was next used to determine the competitive environment. The Five Forces method is used to determine a company’s profit potential for a particular industry.

Porter’s Five Forces was developed in 1979 by Michael Porter as a framework to assess and evaluate the competitive position of a company in an industry. It is based on the theory that there are five forces which identify the attractiveness and competitive strength of an industry. It is helpful to gain an understanding of a firm’s current positon and the position that the firm may look to capture in the future. Porter’s five forces are also used to

A key component of managing a business effectively is having an understanding of the competitive environment in which that company operates weather it’s a large or small business. A way to access the competitive environment is the use of Porter’s model also known as Five Forces Analysis. The Five Forces Analysis was developed by Michael Porter of Harvard business school back in the late 1970’s. Ideally this analysis should be done before starting up your business. It can show you the likelihood of success of the company before you start it up. Even if your company is established the Five Forces Analysis is still extremely valuable. Once you understand the forces that are acting on and affecting your business being a success you will be in a much better position to develop strategies to combat those forces that are working against you. Porter identifies

Porter’s Five Competitive Forces Analysis is a framework developed by Michael E. Porter of Harvard Business School for study of industry analysis by analyzing five competitive forces which define industry and its business strategy. These five competitive forces determine the competitive advantages, disadvantages and attractiveness or profitability of industry.

This study is especially interesting because of the challenging scenario faced by non-profits nowadays, where they are competing ______.

This part of the research covers a brief information on Porter’s and his five forces model, a number of critiques to the model , examples of a noncompetitive organization applied Porter’s model , and discussion on Grant suggestion to complete Porter’s model.

Porters five forces analysis looks at factors outside of an industry that influence the nature of competition within it, the way in which firms compete and the industry’s likely profitability conducted by the model.

This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter’s five forces help to identify where power lies in a business situation. This is useful both in understanding the strength of an organization’s current competitive position, and the strength of a position that an organization may look to move into.

In the first section, we will look at the overview of the banking industry such as the strategic position, its structure, and information on major competitors. We will also look at the strategic developments at the industry level as well as overall competitive challenges. We analyzed the trends that impact on the business growth, innovation and risk management. We also examined the implications of some developments for business, regulatory

Some authors hold the view that strategy concepts developed for the for-profit organisations cannot be applied at all to non-profit organisations due to the fundamental differences that exist between the natures of these two types of organisations (e.g. Newman and Wallender 1978). It is very likely that because of this thinking the non-profit strategy has received little attention of management researchers (Hatten 1982). By contrast other authors, believe that the differences in these two types of organisations do not mean that the strategy concepts developed for one cannot be applied to the other (e.g. Koteen 1989, Sheehan 1996, and Montanari and Bracker 1986). According to them the existence of differences, only require some adaptation of the strategy concepts before they can be applied to the non-profit sector. Even these changes are not required for some concepts. The most significant differences that inhibit the applicability of for-profit strategy theories to non-profit organisations are the following:

Porter's five forces of competitive position analysis is a simple framework for assessing and evaluating the competitive strength and position of a business organization that formed by Michael E. Porter of Harvard Business School in 1979. Basically, the concept of this theory is actually based on the five forces model that uses to determine the intensity of competition and market attractiveness. Therefore, strategic analysts are often to use Porter’s five forces to comprehend whether new products or services are potentially profitable when they’re entering into new player. The five forces of Michael Porter’s are bargaining power of suppliers, bargaining power of buyers, competitive

Porter’s five forces framework is a framework to analysis the level of competition in an organization and business strategy development. It illustrates upon industrial organization economics to derive 5 forces that find out the competitive intensity and therefore attractiveness of an industry. It has been applied to a diverse range of obstacles, for helping different types of organization increase their profitability. There are different opportunities and treats involved. In the following paragraph, Porter’s five forces framework is illustrated and briefly provide how five forces company’s profit potential.

The year 2012 was historical for the Sultanate of Oman, as HSBC bank’s operations in Oman, represented by HSBC Middle East Ltd, and joined forces with Oman International Bank to become a major player in Oman’s evolving banking sector. The merger was completed in June 2012 and the new entity, HSBC Bank Oman SAOG, was born, bringing with it a wealth of knowledge and experience. (Muscat Daily, June 3, 2012, p-2)