Porter's Five Forces Model
Porter’s Five Forces Model
Porter five forces model is basically a framework for industry analysis. It helps in business strategy development. It was presented by Micheal Porter. According to this framework, there are 5 forces that determine the competitiveness of a market and its attractiveness and profitability. These forces are threat of substitute products, bargaining power of buyers, bargaining power of sellers, threat of new entrants, competitive rivalry within an industry.
Any industry can be taken as an example of this model. Take for example, the Pakistani Textile industry. The threat of substitutes is high, the bargaining power of buyers is high, the bargaining power of seller is low because there are many of them, the threat of new entrants is high because it is easy to set up a textile mill. So the competitive rivalry in the industry is high because the set up cost is low and there are a number of substitutes available to the customers.
http://www.slideshare.net/vipinclear/textile-industry
The Indian textile industry is one of the oldest and most significant industries in the country. It accounts for around 4 per cent of the gross domestic product (GDP), 14 per cent of industrial production and over 13 per cent of the country's total export earnings. In fact, it is the largest foreign exchange earning sector in the country. Moreover, it provides employment to over 35 million people. The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach US$ 115 billion by 2012. The domestic market is likely to increase from US$ 34.6 billion to US$ 60 billion by 2012. It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period.
Textile industry provides one of the most fundamental necessities of the people. It is an independent industry, from the basic requirement of raw materials to the final products, with huge value-addition at every
Porter five forces model is basically a framework for industry analysis. It helps in business strategy development. It was presented by Micheal Porter. According to this framework, there are 5 forces that determine the competitiveness of a market and its attractiveness and profitability. These forces are threat of substitute products, bargaining power of buyers, bargaining power of sellers, threat of new entrants, competitive rivalry within an industry.
Any industry can be taken as an example of this model. Take for example, the Pakistani Textile industry. The threat of substitutes is high, the bargaining power of buyers is high, the bargaining power of seller is low because there are many of them, the threat of new entrants is high because it is easy to set up a textile mill. So the competitive rivalry in the industry is high because the set up cost is low and there are a number of substitutes available to the customers.
http://www.slideshare.net/vipinclear/textile-industry
The Indian textile industry is one of the oldest and most significant industries in the country. It accounts for around 4 per cent of the gross domestic product (GDP), 14 per cent of industrial production and over 13 per cent of the country's total export earnings. In fact, it is the largest foreign exchange earning sector in the country. Moreover, it provides employment to over 35 million people. The Indian textile industry is estimated to be around US$ 52 billion and is likely to reach US$ 115 billion by 2012. The domestic market is likely to increase from US$ 34.6 billion to US$ 60 billion by 2012. It is expected that India's share of exports to the world would also increase from the current 4 per cent to around 7 per cent during this period.
Textile industry provides one of the most fundamental necessities of the people. It is an independent industry, from the basic requirement of raw materials to the final products, with huge value-addition at every