Porter’s Six Forces: Benefits and Disadvantages

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Benefits
Disadvantages
Conclusion

Introduction

Porter’s Six Forces have recently started being used as a tool for analyzing market trends and defining the probability of success in case of entering a certain economic environment. Similar to other frameworks used for evaluating the friendliness of a specific market for a particular company, Porter’s Six Forces has benefits and disadvantages. Although the inclusion of the sixth parameter of complementary products allows it to produce more accurate results, the model does not allow embracing the full extent of market factors, which is a critical weakness.

Benefits

Starting with the several positive aspects of the model, one should give it credit for representing an important upgrade from the Five Forces Model. The advantages of the Six Forces Model are quite evident; namely, it allows grasping six main factors influencing the chances of an organization in a specific market. To be more precise, the model provides a detailed evaluation of the target market environment, gauging the extent of competition within it.

Disadvantages

However, there are several glaring problems with the Six Forces Model, which become evident after its basic structure is analyzed. Namely, the model allows evaluating only six factors of the myriad of influences that organizations experience in any market. Although the outlined six forces are typically dominant, the unique specifics of a particular market may make the Six Forces Model inapplicable. Similarly, the model will not necessarily be suitable for every industry.

For instance, in the realm of the fashion industry, other crucial forces such as consumers’ tastes define the competitiveness of a company and its ability to withstand the extent of rivalry in the chosen market. Therefore, the Six Forces Model has its limitations, which are mostly defined by the restrictions of the six-facto analysis. The specified issues might seem minor, yet, in the grand scheme of the global market, they may serve as essential and quite reasonable criticisms of the model and its limitations.

Therefore, the Six Forces Model provides an important insight into a market into which a company is willing to enter, yet it is limited by its design. Namely, the modification that the model makes to Porter’s Five Forces Analysis helps to identify the complementary products that shape the perception of a product and a specific brand, as well as its competitiveness within the target setting, make the results of its analysis not quite reliable. Arguably, with a unique competitive advantage that requires the use of specific complementary products or, on the contrary, does not depend on the same set of materials that other firms do, the proposed model may help an organization to thrive in the market of its selection. However, as is, the Six Factor Model could use additional assessment parameters.

Conclusion

Despite its ability to assess the target market more precisely due to the introduction of the sixth factor, namely, the threat of complementary products, restrictions imposed on the analysis by the rigid six-factor structure, Porter’s Six Forces framework has several significant limitations. The introduction of the additional dimension to the current set of assessment elements introduced in the traditional five-factor model has made it possible to expand the analysis, thus creating a more accurate representation of the general market situation. As a result, companies can make a deliberate decision when considering a specific market environment and the opportunities that they can pursue in it.

Click Here To Order Now!

Porter’s Six Forces: Benefits and Disadvantages

Do you need this or any other assignment done for you from scratch?

We have qualified writers to help you.

We assure you a quality paper that is 100% free from plagiarism and AI.

You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)