The Application of Porter’s Five Forces Model on Organization Performance: A Case of Universities in Republic of Macedonia (original) (raw)
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Development of the Quantitative Five Forces Analysis as a Strategic Management Tool
2015
In the article opportunities for the development and improvement of Porter’s Five Forces Model implementation for strategic management were found. Main criterions of determining the strength of competitive forces within the industry, and thus affecting the industry attractiveness were identified. The methodology of Quantitative Five Forces Analysis for determining the attractiveness of industry in quantitative terms was designed, which can become the tool for strategic decision-making.
Proceedings of the The 3rd International Conference Community Research and Service Engagements, IC2RSE 2019, 4th December 2019, North Sumatra, Indonesia, 2020
Data collection was carried out by analyzing performance in services, organizations and human resources, finance, and infrastructure. Data was collected from the management level of universities, faculties, and bureaus. Data were analyzed using SWOT analysis, which integrated the Porter's Five Forces Model Competition. The results showed that the margin on the strength component was 1.165, weakness was-0.069, the opportunity was 0.220, and the threat component was 0.195. It was concluded that the position of Unimed's competitiveness was in a position ready to grow and develop and support an aggressive strategy. The strategies used as alternatives to improve Unimed's competitiveness are improving the quality of human resources, improving the quality of study programs, increasing research and innovation, increase the relevance of graduates, and increase vocational education.
A Critical Analysis of Porter’s 5 Forces Model of Competitive Advantage
Social Science Research Network, 2020
The 5 forces of competitive advantage, as outlined by Porter, attempt to explain how firms can achieve Competitive Advantage in the industry they belong too. While this theory is certainly applicable to a fair degree, it is not free from its limitations. This paper critically analyses the Porter's 5 forces model while also comparing it with various other frameworks that attempt to explain Sustainable Competitive Advantage. It goes on to show the progress of tools used by management theorists to understand the importance of (sustainable) competitive advantage. This is done with the help of models that comprise of both the industry-based view, such as Porter's 5 forces, and the resource-based view, such as Barney's VRIN framework. The progress this paper looks at also includes relatively more revolutionary views and perspectives from thinkers like Grundy and Recklies. The paper broadly covers the explanation of the five forces with a few examples, after a short introduction, prior to examining the advantages and disadvantages of the framework. Here the paper outlines various other frameworks that suggest means of overcoming a few of the limitations highlighted in Porter's model. This includes the work of authors like Barney, Hamel & Prahalad, Teece et al., Penrose and various other esteemed management theorists. The paper finally concludes with the view on Porter's framework highlighting the most significant merits and demerits.
The Relevance Of Porter’s Five Forces In Today’s Innovative And Changing Business Environment
Journal of Marketing Management and Consumer Behavior, 2022
Porter’s five forces framework (rivalry existing competitors, threat of new entrants, power of suppliers and buyers, substitut products and services) is based on the perception that an organizational strategy should encounter the opportunities and threats in the organizations external setting. A competitive strategy should rest on an understanding of industry structures and the way they change. Porter argues that the aim of the strategist is to recognize and handle a competitive environment by directly looking at competitors, or to contemplate a broader perspective that competes against the organization (Porter, 1979). Arguably, technological advancements and different ways of strategic thinking, such as shaping the future, engaging with customers, and creating long-term value using innovative ways may have shifted Porter’s five forces thinking from competing in an existing competitive environment to seeking opportunities in new innovative markets. However, one may wonder, if organizations are up to par for stepping out of their current competitive market to become a pioneer in a new market environment. This paper outlines and focuses on the relevance of Porter’s five forces today and its appropriateness when managers are considering innovation and change. Additionally, there will be an exploration of alternative strategies that have similarities with Porter’s five forces.
2012
Background: There are a number of models and frameworks used in the analyses of competitiveness of engineering universities in the context of internationalization and globalization. Although much can be derived from such analyses, it is argued that universities that can be harnessed to provide competitive advantage can be best analyzed when regarded as an industry. In this study, the competitiveness of Batangas State University College of Engineering was determined based on Porter's Five Competitive Forces Model and was defined by the following: the threat of new entrants, rivalry among existing firms within an industry, the threat of substitute products or services, the bargaining power of suppliers, and the bargaining power of buyers. The intensity of threats of new entering universities, short-term substitutes, and rivalry among existing universities were determined over the strength of Batangas State University College of Engineering as supplier, and as viewed by the industr...
International Journal of Management Cases, 2011
Development of marketing strategy of the company has to be based primarily on the results of the analysis of industrial structure. The best known framework for analysis and the analysis of structural features of industries-Five competitive forces model by Michael E. Porter, was used in this paper aiming at designing marketing strategies and the development of sustainable competitive advantage for one Croatian small bakery concerning the influence of five forces on the whole industry. The interpretation of the findings enabled owner of analyzed subject: to determine the attraction of bakery industry, to measure perceptions of the strength of competitive forces, to identify the existing competitive advantages and key success factors in the further development, to formulate appropriate marketing strategies and to predict future movements in the bakery industry. Although Porter's model is a simplified picture of the forces that affect the profitability of certain industries, results of this paper have undoubtedly shown that Porter's model is valuable even in the small business sector. Taking into account the contemporary dynamics and unpredictability of the turbulent market conditions, the model will surely continue to be one of the main tools in strategic analysis of different industries, but also the specific business entities, regardless of their size.
The apex of environmental scanning with regard to competition can only be found in Porter's Five Forces model. This is a long side External environment scanning tools such as Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis and Political, Economic, Social, Technological, Environmental and Legal (PESTEL) analysis and calculate its coping with competition, how to retain or increase a company's market share among others. This requires accurate competitive analysis in the face of these complexities. This may adversely affect the application and continued use of the five forces in Kenya. This study was an assessment of the application of Porter's Five forces model of competitive analysis amidst the rapidly changing environment in the Kenyan Banking industry. The problem in this study was that the failure to use and under-utilisation of the five forces by banks has led to poor performance. The purpose of the study was to assess the application of the five forces model in terms of its benefits and limitations, and how it can be modified to cope with the Kenyan banking industry. This study would be of great significance in enriching the body of knowledge on Porter's five forces model and providing a meaningful and contextual evaluation of the Kenyan banking industry consequently coming up with useful insights. A descriptive survey design was used and a triangulation of both quantitative and qualitative methods. A sample of 62 respondents was randomly selected from the stratified target population of top, middle and operational level managers in Cooperative Bank of Kenya and given questionnaires. The data was analyzed both qualitatively and quantitatively and processed through computer (SPSS) with special emphasis on the facts and emerging themes that addressed the research questions and the resulting correlation and regression analyses results presented, discussed and interpreted. This was a mixed methodology of descriptive and inferential statistics to establish the existing relationships between the independent and dependent variables. Based on the findings, this study concludes that there is a strong positive relationship shown by R value of 0.8 between Porter's Five Forces model and the performance of Cooperative Bank of Kenya. It also concludes that the strength and effects of substitutes should not be ignored; competitors are significant in benchmarking, keeping the management on toes and increasing efficiency and effectiveness thus aiding in success and achievement of competitive edge through innovation; the Bargaining power of buyers within the banking industry is critical in terms of understanding the bank's buyers and successfully meeting their demands as a way of retaining them and achieving high customer satisfaction for repeat sales; the Bargaining power of sellers apply to the banking industry was a factor to watch as increase in the cost of their services leads to an increase in the cost of services offered by Cooperative Bank and the quality of their services also such as assured security and clean working environment determines employee motivation and satisfaction. Threat of new entrants was found to apply to the banking industry and needed mitigation measures as stated in the recommendations of the study.
Porter's Five Forces in Practice: Templates for Firm and Case Analysis
Michael five forces framework is a rich, in-depth assessment of the underpinnings of competition and profitability in an industry and is neither easily nor quickly conducted, perhaps leading to its misunderstanding and even misuse. To aid students and managers, I developed a set of templates that systematically guides an analyst through a comprehensive assessment of the five forces using graphics, visual cues, a uniform structure, and straightforward descriptions of concepts. In this paper, I provide a copy of the templates, describe their structure and use, provide an example of a completed template, and discuss possible modifications and extensions.
Developing Competitive Strategies Based on SWOT Analysis in Porter's Five Forces Model by DANP
In such a competitive business area, companies which are especially pioneers in the sector try to develop sustainable and competitive strategies to retain their positions in the market. In this purpose, in literature many theories have been developed. Because each of those strategies have their own strong and weak sides, developing new strategical analyses keeps on. In this research an integrated model of SWOT (Strengths-Weakness-Opportunities-Threats) Analysis and Porter's Five Forces Model has been used to develop a competitive strategy model for a business firm in food sector by DEMATEL (Decision Making Trial and Evaluation Laboratory) and ANP (Analytic Network Process) techniques. Based on results, in regards of relative important items those are related to strengths and opportunities in competitors force which have considerable weights in the global weights table, maxi-maxi type competitive strategies have been developed for the company.