Hey Sir, will a Porters 5 Forces be able to prove poor strategy by a company operating in a duopoly? For example, it could be said that even with low competition, the company still performed poorly.
Ask the Tutor ACCA SBL
Porters 5 Forces
3y ago#1The Five Forces model xays nothing about individual companies. It refers to the attractiveness of markets ie how easy it should be to make a good profit.
Even a monopolist is not guaranteed profits: it could be a monopoly supplier of a product no one wants.
But doesn't the five forces model analyse the internal and external factors whereas PESTLE is the one that analyses the external factors and SWOT analyses the internal factors?
3y ago#3Pestel = external
SWOT = Internal (SW) and External (OT)
5 Forces = analysis of market attractiveness. All five forces are external.
SWOT and 5 Forces have overlaps. Think of threat of new entrants.
Sign in to reply to this topic.