Porter’s 5 Competitive Forces, what do you believe is a limitation to only evaluating those competitive forces for that selected industry/company. In other words, what implications are NOT considered when only utilizing Porter’s 5 Competitive Forces and how might you identify those additional external factors?
Debate, Agree or Disagree: Some studies criticize Porter’s Five Forces Model. It is argued that the model ignores the long term advantages got from a productive win-win strategy. The model is also assumed to be static and, therefore, it resists innovation. Rapid changes in the structure of the banking industry such as technological advancement and population changes may affect the performance of some firms in the industry. The model also overlooks the fundamental role of complements by concentrating on industry and group structures and subordinating individual companies (Brandenburger, 1995). As such, it is assumed to limit its applicability.