Porters 5 Forces Analysis

£43.00

  • Faithfully represents the core principles of Porters 5 forces
  • Produces a visual map of the 5 forces
  • Compelling strategic rationale
  • For autonomous or team workshop use
  • Download, install and use immediately after purchase.
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Description

A strategic planning tool originally designed / created by Harvard Business School professor Michael Porter, to analyze an industry’s attractiveness and likely profitability. Since its publication in 1979, it has become one of the most popular and highly regarded business strategy tools.

Porter recognized that organizations likely keep a close watch on their rivals, but he encouraged them to look beyond the actions of their competitors and examine what other factors could impact the business environment. He identified five forces that make up the competitive environment, and which can erode your profitability. These are:

Competitive Rivalry.

This looks at the number and strength of your competitors. How many rivals do you have? Who are they, and how does the quality of their products and services compare with yours?
Where rivalry is intense, companies can attract customers with aggressive price cuts and high-impact marketing campaigns. Also, in markets with lots of rivals, your suppliers and buyers can go elsewhere if they feel that they’re not getting a good deal from you.
On the other hand, where competitive rivalry is minimal, and no one else is doing what you do, then you’ll likely have tremendous strength and healthy profits.

Supplier Power.

This is determined by how easy it is for your suppliers to increase their prices. How many potential suppliers do you have? How unique is the product or service that they provide, and how expensive would it be to switch from one supplier to another?
The more you have to choose from, the easier it will be to switch to a cheaper alternative. But the fewer suppliers there are, and the more you need their help, the stronger their position and their ability to charge you more. That can impact your profit.

Buyer Power.

Here, you ask yourself how easy it is for buyers to drive your prices down. How many buyers are there, and how big are their orders? How much would it cost them to switch from your products and services to those of a rival? Are your buyers strong enough to dictate terms to you?
When you deal with only a few savvy customers, they have more power, but your power increases if you have many customers.

Threat of Substitution.

This refers to the likelihood of your customers finding a different way of doing what you do. For example, if you supply a unique software product that automates an important process, people may substitute it by doing the process manually or by outsourcing it. A substitution that is easy and cheap to make can weaken your position and threaten your profitability.

Threat of New Entry.

Your position can be affected by other companies ability to enter your market. How easily this could be done? How easy is it to get a foothold in your industry or market? How much would it cost, and how tightly is your sector regulated?

If it takes little money and effort to enter your market and compete effectively, or if you have little protection for your key technologies, then rivals can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it.

Note: This model requires a full version of Microsoft Excel – macro enabled to be installed on your PC / Mac

System Requirements

This software is distributed as a standard WinZip file which contains a ‘.exe’ (executable) file format and requires a suitable Windows based operating system and ‘full’ version of Microsoft Excel (macro enabled) installed and operational on your PC / Mac.

The application (interactive model) will run on 32-bit and 64-bit versions of MS windows and Excel (inc. office 365).

 

 

Installation and Security

This interactive model produces secure files that automatically run on MS Excel. The files produced include specific programming (VBA) which in turn has been thoroughly checked for the presence of any viruses /malware / malicious code by; Symantec Norton Antivirus. The distribution file for this software is a .exe file (executable) and includes an embedded ‘signed’ digital certificate for complete authenticity and integrity. Digital signing is based on Microsoft Authenticode technology and ensures that the software is completely genuine – If the software is not genuine or has been tampered with, the operating system and or antivirus program will trigger an appropriate message.

Furthermore, after you install the programme, it will automatically become hardware locked to the computer it was installed upon and any files produced thereafter will once again be hardware locked.

How to install the product after purchase – The following instructions will also be given as part of the order confirmation process.

a) Download and install the program zip file using the secure URL Link.
b) Unzip the file and install the .exe file – double click and follow on-screen instructions.
c) Once the program has been installed, select it from your main program menu (under Arcturus7 Business Models) and follow the ‘on screen’ instructions.
d) You will be prompted for an ‘Unlock Token’ the first time you run the program.
e) To ‘unlock’ the software, please enter your email address followed by a dash ‘-‘ and your Order Number for example; youremail.com-1243

Workshop Operational Algorithm

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