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Government as 6th Force in Porter's Five Forces
Naveen Ahuja
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Who can give an explanation of the government factor in Porter's Five Forces? What is it? Who introduced it? (...) Read more? Sign up for free
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Example Goverment Force in Five Forces
Abdur Rob
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I can't tell you who introduced this 6th Force, but the example below can justify the reason.
Nowadays, many Governments have established regularity bodies. As an example, in Bangladesh, Bangladesh Telecom Regularity Commission (BTRC) fixed the price ceiling (BTD 0.25 - BDT 2.00) for cellular phone. This is one of the forces for the cellular operators to maintain this price range.
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Government and 5 Forces
Alchui
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The Government plays the role of "Caregiver/Policeman" who regulates the economy [See Porter's Diamond of National Advantage]. Government "provides" the land space for development, upgrading and funding schools and skills, size of population and labour force, attract foreign investors, encourage entrepreunership, regulates the imports and exports, regulates the industries and its business policies, etc. The Government will "nurture" the growing industries, thus some firms/industries benefit from this force more than the others.
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