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Industrial Analysis
- Porter Five Forces Model
| Sanjeet Yadav
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*
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.
Importance
• Formulated the appropriate strategy
• Industry Analysis (no. of player, industry structure etc.)
• Future Changes
• Competitive advantage
• Cost Advantage
• New Product Development
• Contraction/Diversification
Model
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.
. Thanks . Regards .

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Industrial analysis

  • 1. Industrial Analysis - Porter Five Forces Model | Sanjeet Yadav
  • 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
  • 6.
  • 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.
  • 8. . Thanks . Regards .