Famous Five Forces of Competitive Position model innovated by Michael Porter provides a simple perspective for assessing and analyze the competitive strength and position of a corporation or business organization.
In his thirties at the first best seller book of Porter named “Competitive Strategy” he define many useful strategy for corporates and business world.
Michael E Porter’s five forces are very useful while making a qualitative evaluation of a firm’s strategic position. Here are the key five forces Porter innovate.
porter’s key five forces
1. Existing competitive rivalry between suppliers
2. Threat of new market entrants
3. Bargaining power of buyers
4. Power of suppliers
5. Threat of substitute products (including technology base trend change)
Porter use to identify the industry in to the main five category :
Porter is also known for his simple identification of five generic categorization of industries:
1. Fragmented (example: shoe repairs, umbrella repair etc)
2. Emerging (example: space travel)
3. Mature (example: automotive)
4. Declining (example: solid fuels)
5. Global (example: Technology devices, micro-processors)
I could suggest readers to review these books of Michael E Porter to study more similar strategies and analysis:
Michael Porter’s Best books:
Competitive Strategy: Techniques for Analyzing Industries and Competitors, 1980
Competitive Advantage: Creating and Sustaining Superior Performance, 1985
Competition in Global Industries, 1986