Understanding Porter's Five Forces Model for Competitive Strategy

The video discusses Porter's Five Forces model, developed by Michael Porter in the 1980s, which outlines competitive pressures businesses face in a market. It explains the five forces: threat of new entry, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and industry rivalry. The model helps businesses assess their competitive position but is criticized for being static in a dynamic world. It doesn't account for factors like CSR, international expansion, or niche markets, making it more theoretical than practical.

What challenges do businesses face when applying Porter's model to dynamically changing markets?

How can the attractiveness of an industry influence the behavior of incumbent firms?

What are some limitations of Porter's Five Forces model in real-world applications?