We learned Michael Porter’s Five-Forces Model to evaluate competitiveness within the company’s industry. Porter’s five forces include: rivalry, new entrants, suppliers, and buyers. Harvard professor Michael Porter’s book “Competitive Strategy” propelled the concept of industry environment into the foreground of strategic thought and business planning. (Pearce & Robinson, 2000, p.84) Porter contends “The collective strength of these forces determines the ultimate profit potential in the industry, where profit potential is measured in terms of long-run return on invested capital”. (Wheelen & Hunger, 1998, p.60) The cornerstone of the book is an article from the Harvard Business Review in which Porter explains the five forces that shape competition in an industry. (Porter, 2012, Porter, 1996; The Five Competitive Forces, 1996)
The five forces are:
Rivalry among existing competitors
The bargaining power of suppliers
Threat of new entrants to the market
The bargaining power of buyers
Threat of substitute products/services2.The pool of industries are as follows:
United States higher education (private or public)
Healthcare (Excluding pharmaceuticals)
1. Select ONE of the industries below and identify a specific company in that industry.2. Identify the key drivers of competition for that industry and specifically for the selected company.3. Explain in details how the above-mentioned external competitive forces are affecting the business environment of the industry in general, and the selected company in particular on the overall strategic planning processes that are unique to that industry in general, and that company in particular.
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