
Mrinal Ghosh Business Consultant, India

Measuring / Calculating the Five Forces of Porter?
Hi, can somebody help me how to calculate the coefficients 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 nonnumeric type of analysis. It is very hard to determine, whether a coefficient 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.



Anil Kshatriya Professor, India


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Mrinal Ghosh Business Consultant, India


@ Anil Kshatriya
Hi Anil, why do you feel that they are ordinal in (...)



Anil Kshatriya Professor, India


@Mrinal
Why not. It can be extended to logic of the GE Mat (...)



Mrinal Ghosh Business Consultant, India


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Agustin Cosso Leskovar Student (University), Argentina


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Mrinal, I have made some research in my math books (...)



Mrinal Ghosh Business Consultant, India


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Agustin Cosso Leskovar Student (University), Argentina


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