INTERNATIONAL BUSINESS
Faculty III: Economics
Fachhochschule Mainz
University of Applied Sciences
Strategic Management I
Critical Reflection of the Porter Five Forces Concept
Presented by: Julia Federlein 803803
Presented to: Prof. Dr. Oliver Kaul
Frau Kattrin Kalpidis
Due date: 29th, June 2007
Table of Contents
1. Executive Summary 1
2. Explanation of the Porter Five Forces framework 1
3. Analysis of the Porter Five Forces concept 2
3.1. Benefits of the Porter Five Forces concept ,2
3.2. Limitations of the Porter Five Forces concept 3
4. Conclusion 4
Bibliography 5
Appendix…………………………………………………………………………………...7
1. Executive Summary
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of busi ...