Porter's Five Forces Model

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Porters Five Force Model

Michael Porter developed a model for analysing the industry within which a business operates which is widely used in today’s competitive markets. The success of this model rests in the fact that it takes a holistic view of the industry in which the business is operating, and not a piece- meal approach which looks at each aspect in isolation. The Porter 's Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you 're considering moving into.

The Porter five force model looks at the following aspects:

1. The level of rivalry in the market
2. The availability of substitute products
3. The threat of new entrants that may join the market
4. The power of buyers

The level of rivalry in the market
This force looks at how intense the current competition is in the market place. Rivalry is high when there are businesses selling the same product or service. Thus it is Mr Price Sports and the mrp Group’s responsibility to find out as much as they can about competitors. The mrp group as a company and now specifically Mr Price Sport has many competitors ranging from Woolworths to Cotton on. I specifically name these two businesses because Woolworths sells casual wear, sporting wear, homeware including bedding, which means ultimately Woolworths sell what every division under
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