This document provides an overview of Porter's 5 Forces model and value chain analysis as planning techniques for analyzing competition. It first explains the 5 forces model and its analysis of competitive rivalry, threat of new entry, bargaining power of suppliers, bargaining power of buyers, and threat of substitute products. It then discusses Porter's value chain analysis and its examination of primary activities like operations, marketing and sales, and support activities like procurement, technology development, and human resource management. The document aims to outline these strategic analytical frameworks for understanding an industry's structure and a company's competitive strengths and weaknesses.

1. 1
Porter's 5 Forces Model &
Value Chain Analysis
Yusmazy Md Yusup
GP02663

2. CONTENT
Introduction
Porter's 5 Forces Model
Porter's Value Chain Analysis
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3. Introduction
Analyse competition
Planning Techniques

4. Porter’s 5 Forces Model
Source: Micheal E.Porter, Competitive Strategy (New York: The Tree Press, 1980)
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5. Porter’s 5 Forces Model
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2. Bargaining Power of Suppliers
• Suppliers of raw materials, components, labour and services to the firms can be a
source of power over the firm when there are only a few substitutes
• Bank Islam (M) Bhd. maintained their operations using IT solutions provided by
Silverlake Group
• Over the years Bank Islam has developed dependencies to Silverlake Group and this
gave power to the group as a main supplier to Bank Islam

6. Porter’s 5 Forces Model
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4. Threat of Substitute Products or Services
• The existence of alternative products or services post threats to firms because the
consumers easily could shy away from one product given that the other product offers
better quality, better after sales services or simply lower in prices
• For perceived superior quality and good marketing strategy and brand positioning,
consumer might choose the brand Evian. However taking price into accounts
consumers may simply switch to other brand such as Spritzer or Dasani to name a few

7. Porter’s 5 Forces Model
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8. Porter’s Value Chain Analysis
Source: Micheal E.Porter, Competitive Strategy (New York: The Tree Press, 1980
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9. Porter’s Value Chain Analysis – Primary Activities
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10. Porter’s Value Chain Analysis – Primary Activities
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11. Porter’s Value Chain Analysis – Support Activities
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12. Porter’s Value Chain Analysis – Support Activities
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13. Reference
Porter, M. 1985. Competitive Advantage: Creating and Sustaining
Superior Performance. The Free Press, New York.
Wikipedia, The Free Encyclopedia. 2014. http://en.wikipedia.org/
wiki/Porter_five_forces_analysis . [7 Oktober 2014].
IFM Management Technology Policy. Decision Support Tools.
http://www.ifm.eng.cam.ac.uk/research/dstools/value-chain-/.
[6 Oktober 2014].
Strategy-Key.com. http://www.strategy-keys.com/
michael-porter-five-forces-model.html. [7 Oktober
2014].

14. Thank You