CHARACTERISTICS OF PORTER'S FIVE FORCES MODEL    4066w  

This report aims to discuss the characteristic of Porter’s Five Forces model which had greatly contributes to strategic management. Porter (1980) sees competition in an industry being governed by five different sets of forces and an industry’s attractiveness is contingent on the strength of these five forces. Nevertheless, this model is being debated since it is purely derived from industrial perspective. To be the market leader, resource- base theorists suggested organizations must aware of its intrinsic strength and weakness therefore enable them to formulate strategy efficiently. Apart from perspective imperfect, Porter’s five forces also limited by some factors when applying in certain industry.

To present the contributions as well as limitations of Porter’s five forces framework, this report will examine the five forces of soft drink and airline industry. All the information is collected from text books, journals, articles, annual report and websites.

1.0 Introduction

All purpose of strategy is to help an organization survives and be profitability in the