THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY MICHAEL E. PORTER(1979)

Further reading on Michael Porter

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

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.

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.

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

paul.friend@ncn.ac.uk

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

WHAT PORTER SAYS TODAY…http://www.youtube.com/watch?v=mYF2_FBCvXw

How has he altered his thinking?

How can you use this?

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?

THIS WEEKProduce 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