Question

Do you feel the Five Forces Framework is an adequate method of analyzing a business industry? Explain

Answer 1

Yes, I do believe that porter’s five forces are an adequate method of being able to study the market and the competition which will be an important factor in the process of studying the environment of the market. This is due to the fact that it covers all the grounds where the company would need to put in the most effort, as well as the selected values, represent the best possible interests for the company to look into. In the presence of competition., the factors such as the threat of new entry would always be relevant as well as the presence of substitutes and the power that the suppliers and the buyers have is also relevant in order to understand the dynamics of the market. Where can essentially say that the system which could be formed after the evaluation and strategizing on all the factors presented in the five forces model would allow the company a competitive approach intro the market and not only take into account the strategy but the required fixes and functions sad well, which will be used to cater to the needs of the business in order to maintain a good ROI and create the required value proposition to remain in the market.