Pendahuluan
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Porter's five forces model analyzes the competitive environment in an industry by looking at the bargaining power of suppliers and customers, threat of new entrants and substitute products, and rivalry among existing competitors. While Porter's model provides a useful first step for industry analysis by examining market structure, this course argues that determining industry performance requires going beyond structure to consider additional factors.
Pendahuluan
- 1. 1 The premise of Porters model is that it is worth picking markets. However, if you believe it is worth picking markets, need to have some selection criteria to use. Use structure, because that is what affects performance. Porters solution is to come up with he five forces that drive competition. These 5-forces are new entrants The bargaining power of customers. Bargaining power of suppliers substitute products Rivalry within in an industry, is the only thing that on the face of it one cannot rely 100% on structure to determine. Hence, in Porters analysis, you can pretty much go straight from market structure to market performance. In my mind, Porters method is a good way to begin an industry analysis. A good first shot. However, it does stop there. This course is really built on the premise that one needs more than market structure : however defined, to determine the performance of an industry.