Product management Explain how Porters five forces analysis

Product management;

Explain how Porter\'s five forces analysis may be used in evaluating potential new markets to enter.

Solution

Porter’s model is used to identify the competing forces in an industry. The model also helps to determine the strengths and weaknesses in an industry which is pertinent for new products introduction. The industry structure is identified which is used to draft the corporate strategy of a firm. An organization entering a potential new market to enter need to identify the strengths, weaknesses and the competition in the new market to determine a strategy for entering the market. Porter’s five force model has the distinctive feature of identifying the competitiveness in a market, industry attractiveness, and the profitability of the industry. The five forces of Porter’s model are:

Thus it is pertinent to say that an organization entering a potential new market need to be aware of the competition and profitability to adjust its strategy.