Porter's 5 Forces Framework in Non-competitive Situations?




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Liyth Alhamzah
Sultanate of Oman

Porter's 5 Forces Framework in Non-competitive Situations?

🔥NEW Hi, what part of Porter's five forces framework is inappropriate for non-competitive situations?
I appreciate your help. Thanks.
 

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Jaap de Jonge
Editor, Netherlands
 

5 Forces is not for Non-competitive Situations

Hi Liyth, any model (as used in science) is based on assumptions (premises). These typically limit the applicability of the model; they determine the boundaries of its usage.
The 5 forces model by Porter is no exception to the above, and is based on assumptions, including:
- The goal of a business is long-term profitability.
- All industries are based on competition
- The intensity of competition in an industry is rooted in an industry's economic structure which is determined by Porter's 5 forces.
The above does not mean that there is no world possible outside of the boundaries.
It does however mean that if you'd like to explore industries/situations outside of these assumptions you should not use Porter's model.
Here you can find more on the assumptions behind the 5 forces model.

 
0
Liyth Alhamzah
Sultanate of Oman
 

Non-competitive Benchmarking

OK, Thank you for the reply. Since all industries are based on competition, the question might refer... Sign up

 
2
Jaap de Jonge
Editor, Netherlands
 

Benchmarking in Non-competitive Situations

Note that Porter claims that all industries (or even the whole world) are/is based on competition. T... Sign up

   

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👀Porter's 5 Forces Framework in Non-competitive Situations?
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