Market Analysis Of Michael Porter's Five Forces Model

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Executive Summary: In today’s Business World, Requirements of analytical Market assessments and needs for analysis tools is continuosly increasing. To understand the situations and Market opportunities and threats in terms of competitive analysis and strategic way of thinking is really crucial.With the porters five forces analysis, We can deeply analyze relevant factor affecting sector or industry in our focus and can develop differentiating strategies to catch up competitive advantages and increase market share in relevant sector.With the Five forces Framework of Michael Porters It is possible to find out different directive or instructions to collect benefial information regarding focused industry and Corporates can develop overall…show more content…
Awareness of the five forces can guide a firm perceive the overall structure of its market and create a proper position profitable and less attack risky place. Five forces Model define the main drivers of competition in the market.Managers equipped with the five forces can understand competitive threats and find out opportunities.Deep analysis and findings on rivals,potential entrants,suppliers, customers and substitues can be crucial for developing strategy and ensuring high company performance. In terms of rivalry, The level of competitiveness depends on market growth, diversification of products or exit barriers.If rivalry is high It means profitibality of the firm will be low. In the existing industry/sector, the other factors are bargaining power of suppliers and buyers.For example, Low Switching cost means that bargaining power of buyers will be high and It leads to low profitibality and It creates risky situation in the industry.Two forces remaining to complete the five forces model are Substitute Products and threat of potential entrants. For example, economies of scale, switching cost and accessibility to distribution channels are important items to to take into consideration to analyze threat level…show more content…
This will give opportunity to assess attractiveness of focused industry to managers and elaborate into and If it is feasible or profitable to enter the new market and to see probable risk before entering.The other benefit of the five forces model is that We can feed the other strategic managemeny tools such as value chain ,strategic canvas or swot with findings and outcomes of Five Forces
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