What I Didn't Learn in Business School by Jay Barney Paper

Choose a specific industry (e.g., grocery retailing, the airline industry, etc.), and apply Porter 's Five Forces Model to discuss that industry 's competitive forces and their relative influence.

Porter’s 5-Forces Model: A method for examining the competitive environment for a company or industry. It specifies and evaluates threats from new entrants, suppliers, buyers, and substitutes in the arena of competition.

As we begin to strategically plan for our business, it is important for us to take a deep dive into our competitive environment to understand where we are strong competitively and where we are weak competitively. An analysis of the forces driving industry competition using M.E. Porter’s Five Forces Model will assist us in determining where the power lies in a business situation as we begin to plan. We must understand how they work in our industry and how they affect our particular situation. Whatever the collective strength of these forces is, our job as the strategists of the organization is to

The ‘Five Forces’ model advanced by Porter is influential in its capability to designate many market conditions. This framework predicts the profitability of a market, it is a powerful tool for analysing industries, but firms should consider number of problems experienced when it is used. The major problem are to do with industry definition, the static nature of the model, low cost-differentiation axis.

Porters fives forces model is used to analyse a particular environment of an industry. This model could be looked at to see if there are any barriers to entry in the shoe market for Southern Shoe Company. (See Fig 5)

Porter’s five forces analysis is a tool is useful for us to analyse the threat of competition in an industry. Porter believed that the industries were influenced by five forces; competitive rivalry, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and the threat of substitutes. Analysing these areas can allow you to see attractiveness of the market and find a competitive advantage.

Porters five forces analysis is a framework to analyze the level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. This analysis is associated with its principal innovator Michael E. Porter of Harvard University.

Porter’s Five-Forces Model of competitive analysis is a widely used approach for developing strategies in many industries. Generally, Porter’s Five-Forces provide a good, simple yet powerful, framework for developing an understanding of the competitive forces or pressure either increase or reduce within DiGi’s industry that influence its pricing decision. Great competitive forces put more pressure on it while weaker competitive forces get over the pressure.

Michael Porter introduced a model known as Porter’s five forces for analyzing the structure of an industry. His model is recognized as the foundation for a thorough competitive analysis.

The Market environment is another external sector however unlike the macro environment, which the business has no influence over, the market environment can be manipulated by a business especially one of MRPs prestige and experience. Porter’s Five Forces Model is a reliable tool that the business should make use of to identify aspects of the sector that may cause threats or opportunities to arise.

To begin I would like to acknowledge the benefits of using the five forces analysis. Porter’s model is a useful tool for strategists as it provides information on industry profitability and attractiveness. The model explains how value is shared among players and illuminates avenues in which the strategist can explore to get a stronger position within the industry. The model also expands beyond a single product and instead examines an entire industry including players, such as suppliers, who are not direct competitors. The results of the five forces model are well-structured, clear, and easy to understand, thus empowering decision makers. Considering these the model is a useful tool but it is not without fault.

According to American Institute of CPAs (2016), 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. Strategic analysts often use the five forces framework to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.

Porter five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit.

Porter’s five forces is a framework, which was developed by Michael Porter of Harvard Business School in 1979, was widely used in different industries for structural analysis and corporate strategy formulation (Wu, 2012). Porter’s five forces model is considered to be a basic idea to analyze the rules of competition in an industry and stress the important elements for the purpose of achieving a long-term competition attractiveness (Wu, 2012). The main purpose of this essay is to explain how Porter’s five forces framework for industry analysis determine the competition attractiveness of an industry through a case analysis: Fitness First Ltd and the UK health club industry and discuss the usefulness and limitation of Porter’s framework. Porter’s five forces of competition framework will be first briefly introduced. How to assess the strength of competition of the Fitness First Ltd using Porter’s five forces framework will be analyzed secondly. Finally, the usefulness and limitations of the framework in helping managers develop business

Porter’s Five Forces model is used to evaluate the degree of rivalry between competitors in a given industry through assessing the four forces that lead to this outcome. These forces are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, and the threat of substitute products.