Porter’s five forces is a framework or a method that used in an organization or company to determine the industry strength or weakness and competition in the business market. Porter’s five forces model help us to break down in the industry more fully understand the intensity of the competition among industry or products. The analyzing of five forces makes huge impact on industry structure to determine strategy. Strategic analysis uses this porter’s five forces to understand weather their new products or services will work or not and what its barrier and how they improve their new products or services quality? So that they can apply right strategy in right places. This model can apply in any segment of the economy or business to understand the strength or weakness and the competition, attractiveness and profitability among organization or industry. So, an organization can stay tune to their vision and mission.
Porter’s five forces model invented by Michael E Porter in 1979. Michael E Porter is Harvard Business School professor. By his name porter’s five forces model announced or published in his book Competitive Strategy. This theory concept is there are five force that work in different sight and make great impact on the industry. So that the industry ensures about their potential profit. For the help of porter’s five forces model an organization understand what the affecting factor about their decisions weather they enter in a specific industry, weather they need to increase their production or increase capacity or their product and weather they need any development of their products or services or strategies.
