Five Forces Model By Porter
After a detailed analysis of all the five competitive forces of an industry, the development of the corporate strategy can be done in accordance to exploit the structure and variables of an industry so as to decide about the entry an exit to any market, choose between products and services to offer, maximization of profitability, growth and market share.
The porter's five forces model is a very useful tool to provide a first hand knowledge to management about an industry and its variables which forms the basis for further analysis. But at the same time, management also needs to consider the dynamics of environment, effects of globalization and legislations and regulations imposed by government to the industrial sector while using the information gained by using the model.
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