Introduction to porters five forces

1. THE FIVE COMPETITIVE FORCES THAT
SHAPE STRATEGY MICHAEL E.
PORTER(1979)
Further reading on Michael Porter

2. LEARNING OUTCOMES
• To understand the components of the 5 forces model and identify the
characteristics of the model
• To evaluate the effectiveness and relevance of the model today
• Apply the model to a given organisation for next weeks seminar

4. WHY DO WE USE PORTERS FOR
MARKETING CAMPAIGNS?
IF WE KNOW WHO AND WHAT ARE
OUR COMPETITION
Porter five forces analysis is a framework
that attempts to evaluate the level of
competition within an industry.

5. The 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.

6. With a clear understanding of where power lies, you use this to your advantage in a
marketing situation. Enhance your strengths, improve a situation of weakness, and
avoid taking wrong steps. This makes it an important part of your planning toolkit.
Conventionally, the tool is used to identify whether new products, services or
businesses have the potential to be profitable.
https://www.mindtools.com/pages/article/newTMC_08.htm

7. paul.friend@ncn.ac.uk

8. TASK
• Research your allocated force in your group
• Feedback the characteristics of this force to the rest of the group
• Evaluate the effectiveness of this model today
• Now how confident are you to apply the model?
http://businesscasestudies.co.uk/rolls-royce/competing-within-a-changing-
world/porters-five-forces-model.html#axzz3tFppedhV

9. WHAT PORTER SAYS TODAY…
http://www.youtube.com/watch?v=mYF2_FBCvXw
How has he altered his thinking?
How can you use this?

10. SO NOW CREATE A 5 FORCES
ANALYSIS FOR M&S
Consider specifically for the competitor analysis the
following Qs:
• Who are they (identity)?
• What are their goals?
• What strategies are they pursuing?
• What are their strengths and weaknesses
• How can they respond to the market forces?

11. THIS WEEK
Produce a five forces analysis for an organisation of your choice
and present it to the rest of the group next week
You must show evidence of academic research