5 Forces Model Limitations

12manage is looking for students. Info

Five Forces (Porter) | Five Forces Analysis
Knowledge Center

 

Next Topic

Five Forces (Porter) | Five Forces Analysis > Forum > 5 Forces Model Limitations

5 Forces Model Limitations
Robert
Would be very useful to have a critical review of this model, as it has limits.
 

 
Limitations Porter's 5 Forces
Dino, Student (University), United Kingdom, Member
One limitation that clearly stands out is the model does not consider micro, meso or macro economic factors.
For example: an airline provides flights to various destinations across many countries. However, due to economic crisis the likelihood is that some flights will get dropped, even though there is nothing wrong with the service.
Therefore, Porters 5 forces relies heavily on other models such as SWOT Analysis, STEEPLE Analysis and the Arthur D. Little Matrix to fill in the gaps. As a result, there is not one matrix that covers everything.
 

 
Then You Have not Asked All Questions
Kurt Ludikovsky, Consultant, Austria, Member
You might be right if you don't consider all factors.
An economic crisis sounds in your example as an inescapable fact. But in reality, in an economic crisis all suppliers should visit their customers and try to make deals. This would then lead to less dropping of flights.
Another effect might be that many companies switch to alternate communication tools like tele-or videoconferencing, so it's somewhat of substitution.
 

     
Special Interest Group Leader

Interested? Sign up for free.


Five Forces (Porter) | Five Forces Analysis
Summary
Forum
Best Practices


Five Forces (Porter) | Five Forces Analysis
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.1 - Last updated: 22-9-2019. All names of their owners.