Porter's Five Forces

The Rwandan women entrepreneurs therefore, should perform a comparative Analysis, as part of an external inspection to identify rival firms and determine their strengths, weaknesses, capabilities, opportunities, threats, objectives, and strategies. Porter’s Five-Forces form of aggressive analysis is a broadly utilized move toward rising strategies in many businesses. To him, the environment of competitiveness in a given business can be analyzed as a combination of five forces: Rivalry among competing firms, possible admission of new competitors, and possible expansion of substitute products, negotiating power of suppliers and negotiating effort of consumers. (www.mba-tutorials.com.),(http/www.mba-tutorials.com/strategy/65-porter…). (https://www.google.co.in/#q=michael+porter+5+forces+model) …show more content…
The approaches practiced by one industrialist can be successful only to the extent that they provide spirited benefit over the policies followed by rival firms. Modifications in approach by a firm can be met with penalizing countermoves, such as cutting prices, increasing value, totaling features and offering services, lengthening guarantees, and escalating publicity. (www.mba-tutorials.com.), (http/www.mba-tutorials.com/strategy/65-porter…). (https://www.google.co.in/#q=michael+porter+5+forces+model) Free-flowing information on the Internet is driving down prices and inflation worldwide. The Internet, coupled with the common currency in Europe, enables consumers to easily make price comparisons across countries. The intensity of rivalry among competing firms tends to increase as the digit of participants increase, as competitors become further equivalent in magnitude as well as capacity, as demand for the industry’s products declines, and as price cutting becomes common. Rivalry also increases when consumers can switch brands easily; when barriers to leaving the market are high; when fixed costs are high; when the product is perishable; when consumer demand is growing slowly or declines such that rivals have excess capacity and inventory; when the products being sold are commodities not easily separated such as gasoline; …show more content…
Therefore; the social culture with in which economic activity is structured assumes a significant role. Lewis argues at length the role of social and economic organizations in the course of economic growth. In Rostow’s view; the behavior model of people pertinent for economic development can be summed up in six propensities; “the propensity to extend basic science; to use science to economic ends; to acknowledge the potential of innovation; to search for material advance; to consume and to produce children. According to him; these propensities symbolize aspects of social behavior which decide given productive resources; the stage and velocity of growth of production. Some economists; abstract from the socio-cultural aspects by treating them as exogenously given, while others discuss that it is essential to complement pure economic scrutiny of growth problems with the study of socio-cultural facets. For example; Hagen makes out a strong case for making the study of psychological propensities and social arrangement as a fundamental part of any analysis of economic development. Although these economists vary in the type of treatment they extend to socio-cultural aspects; some treating them as exogenous variables while others as endogenous variables-they all

Show More