Business Strategy - Porters Five Forces

Before you begin this course read this course description carefully as they are the extract of this course.

• Porters Five Forces Brief Introduction:

A company's backbone is strategy and Porters Five Forces can play a important role in it. Porter's Five Forces Framework is a method for analyzing competition of a business. It draws from industrial organization economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness of an industry in terms of its profitability. The Five Forces are the Threat of new market players, the threat of substitute products, power of customers, power of suppliers, industry rivalry which determines the competitive intensity and attractiveness of a market. This is why Porters Five Forces makes it a important strategy factor to use .

• The five forces discussed in detail in this course are:

1. Threats of new entry. Consider how easily others could enter your market and threaten your company's position.

2. Threat of substitution.

3. Bargaining power of suppliers.

4. Bargaining power of buyers.

5. Competitive rivalries.

The companies under highlight include Wal-Mart Retailers, McDonalds and PepsiCo-these companies have implemented cost leadership, differentiation, and focus strategic approaches respectively in short they use Porters concept for their strategy in their businesses:

1. Wal-Mart Retailers-Cost Leadership Approach.

2. McDonalds Corporations-Differentiation Approach.

3. PepsiCo-Focus Approach.

Porter five forces holds a important role to businesses currently operating and for Business specialist that are into supply chain and other domains .

it helps evaluate the company's current position with reference to the filter of Porters Five Forces