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Business
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| Number of pages / Number of words: |
6 / 1506 |
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Explanation of the Porter Five Forces framework
The Porter five forces model (see Appendix 1) as an external analysis tool was established by Michael E. Porter and firstly announced in his book “Competitive Strategy: Techniques for Analyzing Industries and Competitors†in 1980 . The main idea of the Porter five forces concept is that the attractiveness of a market depends on the characteristic of the five competitive forces that have an impact on a company (see Appendix 2)...
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The main idea of the Porter five forces concept is that the attractiveness of a market depends on the characteristic of the five competitive forces that have an impact on a company (see Appendix 2). An external force on the company is primarily the rivalry among the existing competitors. The intensity of competitiveness mainly depends on exit barriers, market growth or the diversity of the purchased products...
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