Assumptions of the Five Forces model

Five Forces (Porter) | Five Forces Analysis
Knowledge Center

 

Next Topic

Five Forces (Porter) | Five Forces Analysis > Forum > Assumptions of the Five Forces model

Assumptions of the Five Forces model
Jane
The Five Forces model has two basic premises. The first is that the goal of a business is long-term profitability. The second is that the intensity of competition in an industry is neither a matter of coincidence or bad luck. Competition is rooted in an industry's economic structure. (...) Read more? Sign up for free
 

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

    Log in

 
Assumption in Porter's 5 Forces
Tom
Yet another major assumption of Porter's Five Forces Framework is that he views all industries as based on COMPETITION. However there are important exceptions on this view, such as for example in the automotive industry, where strong COLLABORATION between assemblers and their suppliers have turned out to be very beneficial for all parties. The same may be the case for knowledge-intensive industries, since knowledge sharing increases its overall value. Furthermore, Edward Freeman argues that the economic paradigm of competition should be replaced by the more sustainable paradigm of collaboration with stakeholders.
 

   

         
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. V15.2 - Last updated: 12-12-2019. All names of their owners.