2. Michael E. Porter
• An economist, business strategist & social worker
• Born in 1947
• Professors in Harvard Business School
• Written around 18 books & over 125 articles
• One of the founders of The Monitor Group (A Social
Impact Consultancy) *Now part of Deloitte*
3. What is five forces model?
• A tool for analyzing competition of a business.
• Determine the competitive intensity & attractiveness in terms of its
profitability
• Analyses microenvironment forces.
It was first published in Harvard Business Review in 1979.
4. Importance
• Formulated the appropriate strategy
• Industry Analysis (no. of player, industry structure etc.)
• Future Changes
• Competitive advantage
• Cost Advantage
• New Product Development
• Contraction/Diversification
7. Conclusion
• Makes a qualitative evaluation of a firm's strategic position.
• Helps company to have a fair bit of understanding of lucratively of
market.
• However, criticised on ground of being too objective & irrational.