Describe Porter’s Five Forces Model and explain each of the
five forces.

Porter’s Five Forces...

Question

Describe Porter’s Five Forces Model and explain each of the
five forces.

Porter’s Five Forces Model analyzes the competitive forces
within the environment in which a= company operates, to assess the potential
for profitability in an industry.

■
Buyer power is the ability of buyers to affect the price they must pay for an
item.

■
Supplier power is the suppliers’ ability to influence the prices they charge
for supplies (including materials, labor, and services).

■
Threat of substitute products or services is high when there are many
alternatives to a product or service and low when there are few alternatives
from which to choose.

■
Threat of new entrants is high when it is easy for new competitors to enter a
market and low when there are significant entry barriers to entering a market.

■
Rivalry among existing competitors is high when competition is fierce in a
market and low when competition is more complacent.

Parul · Accepted Answer

Porter's Five Forces Analysis
Introduction
By the virtue of this assignment, I have selected the organization Microsoft on which I would be applying Porter's Five Forces Model. Microsoft is one of the most recognized Technology organization with its relevance being experienced all across the world. A multi-national global organization with American roots offering complete spectrum of consumer electronics, range of IT hardware like PC, computer software and services. Organization is headquarter in Washington, USA best recognized for the Windows Operating Systems and Office suites.
Applying Porter's Five Forces Framework on Microsoft
Force 1 - Power of Bargaining by Customers
The company needs to work on satisfying the evolving needs of the customers almost consistently. As the market evolve and becomes more dynamic, Microsoft works to offer niche technology and platforms to the customers which build loyalty and retentions. Furthermore, Microsoft even today dominates the market for operating systems with Windows and Office 365. Hence, this force of bargaining power of customers is moderate.

Describe Porter’s Five Forces Model and explain each of the five forces. Porter’s Five Forces Model analyzes the competitive forces within the environment in which a= company operates, to assess the...

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