Michael Porters Five Forces

STRATHMORE UNIVERSITY

School of Management & Commerce

Planning Model - Analyzing free-enterprise(a) Industry Structure using Michael Porters louvre Industry Forces

Group members
* Ekirapa Peter
* Githiri Leah
* Kinuthia Ann
* Mugo, Cedric
* Gichuki, Catherine
* Muritu Miriam

Presented to: Mrs. Stella Nyongesa
Date: 16th appalling 2011

According to Michael Porter, an sedulousness is not static but is addicted to changes. Porter set out to define these changes as influenced by five forces. These forces are interdependent and cause an industry to beseem dynamic. According to his book, Competitive Strategy: Techniques for Analyzing Industries and Competitors, these forces determine the intensity of ambition and hence the profitability and attractiveness of an industry. The objective of corporate schema should be to modify these rivalrous forces in a government agency that improves the position of the organization. Porters model supports analysis of the ride forces in an industry. Based on the information derived from the Five Forces Analysis, prudence can decide how to influence or to exploit exceptional characteristics of their industry.




These are:
* Rivalry
* New entrants
* Buyers
* Suppliers
* Substitute products
They can be presented in a diagrammatical model as follows:

1. Rivalry Among be Competitors
Rivalries naturally develop between companies in the same market. For this reason, competitors look to gain competitive advantage through advertising, introducing rising products and crack attractive customer service. This is limited where: the industry is growing slowly; the competitors are equally balanced; high fixed cost and a lack of product differentiation among others. The pursuit of competitive advantage results in frequent price wars, advertising battles and new product introductions which make it expensive to compete.

Rivalry depends on industry concentration. One measure is...If you want to get a total essay, order it on our website: Orderessay



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