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

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Five Forces (Porter) | Five Forces Analysis
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Liyth Alhamzah
Sultanate of Oman

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

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

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4
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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topic The New Industrial Economics School
👀Porter's 5 Forces Framework in Non-competitive Situations?
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More on Five Forces (Porter) | Five Forces Analysis:
Summary
Discussion Topics
topic Assumptions of the Five Forces Model. Limitations
topic 5 Forces in Emerging Industries
topic Government as 6th Force in Porter's Five Forces
topic Industry Analysis model
topic MEDIA as the 7th Force in Porter's Five Forces
topic Strengths of Porter's Five Forces Model
topic Substitutes and the Five Forces Model
topic How does Information Technology alter Porter's 5 Forces
topic Business Networking: Forces are Getting Connected
topic Evolution in our Expectations of Business and Porter's 5 Forces Model
topic Bargaining Power of Buyers. Examples
topic How to Deal with Competitors in Five Forces Analysis?
topic Measuring / Calculating the Five Forces of Porter?
topic There are More than Porter's 5 Forces!
topic Why Porter's Monitor Consulting Company Failed
topic Does Competition Increase the Need for Segmentation?
topic The New Industrial Economics School
👀Porter's 5 Forces Framework in Non-competitive Situations?
Special Interest Group

SIG Leader

Do you know a lot about Five Forces (Porter) | Five Forces Analysis? Become our SIG Leader

Knowledge Center

Five Forces (Porter) | Five Forces Analysis
Knowledge Center



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