Porters 5 Forces Model (Essay Sample)

Porter’s Five-Forces model Name: Course Name: Instructor’s Name: Date of Submission: A strategic group is a term which is used in strategic management, which groups companies in a given industry which have similar combinations of strategies or the same business models. According to Michael Porter, the business analysis model which assists in explaining why various industries can withstand various levels of profitability is what is termed as Porter's Five Forces. This model was first published in a book called "Competitive Strategy by Michael E. Porter's: These techniques were used for analyzing Competitors and Industries" in 1980. This model is commonly used to analyze the corporate industry strategy as well as the structure of a company. Porter recognized five irrefutable forces which play a part in shaping every industry and market in the world. The forces are often used to measure profitability, attractiveness and competition intensity of an industry or market. These forces are the industry competition, the industry possible of new entrants, suppliers’ power, customers power and the threat from substitute products. The concept of strategic grouping is used in the retail shop owners and Alibaba online shop by managers to not only comparing over different periods the evolution and competitive dynamics of an industry to be more clearly understood but also establishing a classification of strategy conducted in their industry. It assists in establishing more value for all stakeholders and the customers in that industry through the establishment of the different strategic group which the market is offerings. For instance, when we look at Alibaba`s mission statement. Alibaba Group’s mission is to make it easy to do business anywhere. The Alibaba business enables other businesses in the same industry to transform the way they operate, sell, market, and im...