no turning back

Porter's model highly focuses on rivalry and profitability but has some major limitations that have many organizations consistently reevaluating their strategic plans. Porter indirectly rebutted the assertions of other forces, by referring to innovation, government, and complementary products and services as "factors" that affect the five forces (Porter, 2008). He assumed that his model will allow markets to stay fairly stable, not taking into account brisk technological advances or increasing competition from international market entrants (Symes, 2008). Porter (1997) also stated that "The essence of strategy formulation is copping with competition". This statement shows companies consistently trying to out do one another by creating bigger barriers to entry. The consumers are not able to have access to information that will allow them to make more informed purchasing decisions, which tends to lead them to switching to another product/brand. In our world today, many industries are growing dramatically fast due to the increase in competitors, while consumers are getting educated about the many different options and choices due to the expansion of technology. Thus, organizations should focus more on the target market and current customers by providing the best possible experience for them, not on competition and bigger profit margins.

referenes http://smallbusiness.chron.com/limitations-various-strategyformulation-analytical-techniques-21171.html(symes, 2008)

^ Michael E. Porter. "The Five Competitive Forces that Shape Strategy", Harvard Business Review, January 2008, p.10. PDF

^ Michael E. Porter. "How Competitive Forces Shape Strategy", Harvard Business Review, August 1997, p.1. PDF

prolog.univie.ac.at/teaching/LVAs/KFK-LM/WS07/Porter.pdf

--------------------------------------------------------------------------------------------------------------------------------

However, Porter’s modeling techniques have some limitations. The absence of