Professional Documents
Culture Documents
MODEL
Introduction
It has been used by Michael E Porter for “Analyzing Industries And
Competitors” in 1980.
Porter model is based on corporate strategy should meet the opportunities and
threats in the organizational external environment.
Porter has identified five competitive forces that shape every industry and
every market.
These forces determine the intensity of competition and the probability and
attractiveness of industry.
The objective of corporate strategy should be to modify these forces to
improve the position of the organization.
Economies of scale:-
Benefits associated with bulk purchasing.
Government actions:-
Will new laws introduced that will weaken our competitive position.
The Power Of Customers:-
industry segment
3. Differentiation across industry
industry segment
Porter says "goals, objectives, culture,
and activities must be consistent with strategy"
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