"Porter five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit.
Three of Porter's five forces refer to competition from external sources. The remainder are internal threats.
Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average.
Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.
This five forces analysis, is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies." [Porter five forces analysis. Wikipedia]
The block diagram example "Porter's five forces model" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Block Diagrams solution from the area "What is a Diagram" of ConceptDraw Solution Park.
Three of Porter's five forces refer to competition from external sources. The remainder are internal threats.
Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average.
Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.
This five forces analysis, is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies." [Porter five forces analysis. Wikipedia]
The block diagram example "Porter's five forces model" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Block Diagrams solution from the area "What is a Diagram" of ConceptDraw Solution Park.
SWOT Analysis
The SWOT Analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates. As such, it is instrument in strategy formulation and selection. SWOT analysis is a method of strategic planning which identifies the factors internal and external environment of the firm and divides them into 4 categories: strengths, weaknesses, opportunities and threats. The ConceptDraw DIAGRAM and MINDMAP software allow professional to make well-designed SWOT matrix in minutes.
Matrices
This solution extends ConceptDraw DIAGRAM software with samples, templates and library of design elements for drawing the business matrix diagrams.
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Deployment Chart Software
ConceptDraw DIAGRAM extended with Matrices solution from the Marketing area of ConceptDraw Solution Park is the best Deployment Chart Software.The Matrices solution offers you the useful tools for creating Deployment Charts in just minutes.
The Deployment Charts designed with ConceptDraw DIAGRAM are vector graphic documents and are available for reviewing, modifying, converting to a variety of formats (image, HTML, PDF file, MS PowerPoint Presentation, Adobe Flash or MS Visio XML), printing and send via e-mail in one moment.
TOWS Matrix
TOWS Matrix is an effective tool which allows to analize the external opportunities and threats by means of analyzing the internal strengths and weaknesses of a company. ConceptDraw DIAGRAM diagramming and vector drawing software extended with SWOT and TOWS Matrix Diagrams Solution from the Management Area will help design TOWS Matrix for your company without efforts.Porter's Value Chain
The available pre-made examples of the matrices, including the Porter's Value Chain’s one can be found in the mentioned solution. It also allows creating an Ansoff matrix, a BCG matrix, a Competitive strategies matrix, a Four-quadrant matrix, a Chore chart, a Flow process chart, a Quality function deployment matrix, a Positioning map and Porter’s generic strategies matrix being based on the templates given within the Matrices solution.- Porter's Value Chain | Block diagram - Porter's five forces model ...
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