Porter ‘s analysis or Porter ‘s 5 forces is a theory that measures a sector or company by identifying different parameters. This model makes it possible to measure the competition of an industry and, in the case of companies, to identify better opportunities.
With Porter’s 5 forces, companies can analyze and measure their resources . From there, they will be in optimal conditions to establish and plan strategies that enhance their opportunities or strengths to face the different threats and weaknesses.
Who was Michael Porter?
As we have discuss Michael Porter is the founder of the field of modern strategy. He is one of the most influential thinkers on the planet about management and competitiveness and one of the best economists in world history.
Professor at Bishop William Lawrence University at Harvard, he is Macedonia Email List the author of 19 books and more than 130 articles, as well as director of the Harvard Institute for Strategy and Competitiveness, which was found in 2001 to further his work and research.
What are they for and what are the benefits of Porter’s 5 forces?
Generally, this model is one of the ones with the greatest advantages, since it can be appli to many areas. Its main benefit, however, is that it gives companies the opportunity to anticipate and influence the competition. In addition, it also collects the origins of profitability and studies the market as a whole.
Thanks to this, companies have the tools to be able to carry out strategies that benefit them within the field of competition and thus manage to maintain a healthy internal structure.
Once we have studi each of Porter’s 5 forces, we can implement a strategic marketing plan to be more competitive. In addition, it will allow us to measure competitiveness in a sector and assess whether our company is prepar to enter it.
In summary, bearing in mind that the market is full of competition, these five principles allow you to know what the threats to a business are and help you detect opportunities if you want to create a new one. We could say, in conclusion, that together they offer to increase the medium and long-term profitability of any organization.