Measuring / Calculating the Five Forces of Porter?

      
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		            		Mrinal Ghosh
Business Consultant, India
			            
Measuring / Calculating the Five Forces of Porter?

	          		Hi, can somebody help me how to calculate the co-efficients for each of the five forces. I understand all of the 5 forces might not be having the same weight. Also it would differ by industry.
				      
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						            	Agustin Cosso Leskovar
Student (University), Argentina
												
				                Calculating the Forces

													In order for this analysis tool to be effective, you may want to consider a few aspects:

A) In order to solve any optimization problem you need to apply the right formula m(x;y;z;... n)

B) This method stands for a non-numeric type of analysis. It is very hard to determine, whether a co-efficient would be effective or not. Yet, a few of them may be calculated. I'm not quite certain about them, but for example:

Competitors: it would be interesting to know how many competitors exist in the whole market. By knowing this amount, you may decide which style of scale economy you need. If there are only 2 rivals in the same market, you may choose a Stackelberg model, by simply defining your price as a leader, hence: P = a - b [q1+r2(q1)]; where r2 stands for the reaction.
				                
										              1

						            	Anil Kshatriya
Professor, India
												
				                Calculating Porter's 5 Forces

													Porter's five force model is more of a tool to understand factors that affect competition. It is ord... Sign up
				              
										              0

						            	Mrinal Ghosh
Business Consultant, India
												
				                @ Anil Kshatriya

													Hi Anil, why do you feel that they are ordinal in nature and not cardinal. I see a similarity betwee... Sign up
				              
										              0

						            	Anil Kshatriya
Professor, India
												
				                @Mrinal

													Why not. It can be extended to logic of the GE Matrix. I only have one apprehension that we might ge... Sign up
				              
										              2

						            	Mrinal Ghosh
Business Consultant, India
												
				                Sub Parameters

													With due regards, though it is a mixed game, I guess the coefficients can be calculated by consideri... Sign up
				              
										              2

						            	Jagdish B Acharya
Consultant, India
												
				                Hurdles Too Strong to Calculate

													Though we like the idea of calculation, everything cannot be calculated, because:
1. The company is... Sign up
				              
										              1

						            	Agustin Cosso Leskovar
Student (University), Argentina
												
				                Sub Parameters

													Mrinal, I have made some research in my math books here at home. I think there is a way to determine... Sign up
				              
										              2

						            	Mrinal Ghosh
Business Consultant, India
												
				                Historical Data

													Yes, also we can have a look at the historical data to analyse how the markets have behaved in these... Sign up
				              
										              2

						            	H D SHARMA
Professor, India
												
				                Calculating the Magnitude of the Five Forces Quasi Quantitively

													Hi the group! The idea is fascinating but we must remember that the numbers so estimated or generate... Sign up
				              
										              0

						            	Agustin Cosso Leskovar
Student (University), Argentina
												
				                Garman-Kohlgane

													HD Sharma, with the GK formula you shouldn't have to do any qualitatively interpretation, you just h... Sign up
				              
										              1

						            	Umesh
Project Manager, Sultanate of Oman
												
				                Many Variables

													When variables are many, analysis becomes complicated, even when data is available. So 5 force analy... Sign up
				              
										              2

						            	Hans Joergen Pedersen, Denmark
												
				                The Model is Non-numerical in Nature

													Until I come across a very advanced micro econometric model (i.e. a book on the subject), I take the... Sign up
				              
										              1

						            	JOSE DELGADO
ACCOUNTANT, Mexico
												
				                Five Fources Measures

													In my personal point of view, I think it should be fantastic to use algorithms and formulas to predi... Sign up
				              
										              2

						            	Parvez
Manager, Mauritius
												
				                Calulating Forces by Social Engineering

													I believe these statistical tools are important but we should favor social engineering also (finding... Sign up
				              
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