Porters Five Forces – Part of Our Lean TQM Toolbox Series

The problem: You need to develop your organisations competitive strategy, or perhaps you are considering launching a new product line, entering a new sector, or testing your organisations competitiveness in relation to an emerging opportunity.

In the fight for market share, competition in an industry is rooted not only in an organisations direct competitors, but in its underlying economics, customers, suppliers, potential entrants, and substitute products.

Analysing these underlying sources of competitive pressure provides the groundwork for a strategic plan of action. They highlight the critical strengths and weaknesses of the company, pinpoint the positioning of the organisation in its industry, clarify the areas where strategic changes may yield the greatest payoff, and highlight the places where industry trends promise to hold the greatest opportunities or threats.

Organisations often use Porter’s Five Forces to understand whether new products or services are potentially profitable. By understanding where power lies, the theory can also be used to identify areas of strength, to improve weaknesses and to avoid mistakes.

We have partnered with our sister organisation, the Australian Supply Chain and Logistics (ASCAL) Institute to bring you another tool in our Lean-TQM Toolbox Series. Click the link for a simple step-by-step process brief.

Click here for the PDF Report: Porters Five Forces