Porters Model
Michael porter’s five forces analysis is a frame work for industry analysis and business strategy development formed by Michael E Porter of Harvard business school in 1979.Five Forces model of Michael Porter is a very elaborate concept for evaluating company's competitive position.
Three of porters five forces refer to competition from external sources and the remainder are internal threats .porters referred to this forces are micro environment to contrast it with more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit.
By using TANESCO as an organization to make reference with applicability of Michael porters five mode of competition .TANESCO (TANZANIA ELECTRIC SUPPLY COMPANY LIMITED) is a monopoly power supply company in Tanzania which was established in 1964 and it is wholly owned by the government of Tanzania. The ministry of energy and minerals regulate the operations of TANESCO.Its headquarter is in Dar esSalaam Tanzania and its main objective is to supply electricity to Tanzania and Zanzibar.
The following are the applicability of Michael porters five mode of competition in relation to TANESCO as our company of reference. Michael Porter provided a framework that models an industry and therefore implicitly also businesses as being influenced by five forces. Michael Porter's Five Forces model is often used in strategic planning.
Michael porters five frame work of competition and their applicability can be explained as follows;
Threats of new entrants or barriers to entry; profitable markets that yield high returns will attract new firms, this result in many new entrants which eventually will result a decrease in profitability for all firm in an industry. Unless the entry of new firms can be blocked by incumbents, the abnormal profit rate will trend towards zero [perfect competition].one reason new entrants pose such a threat is that they
Three of porters five forces refer to competition from external sources and the remainder are internal threats .porters referred to this forces are micro environment to contrast it with more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit.
By using TANESCO as an organization to make reference with applicability of Michael porters five mode of competition .TANESCO (TANZANIA ELECTRIC SUPPLY COMPANY LIMITED) is a monopoly power supply company in Tanzania which was established in 1964 and it is wholly owned by the government of Tanzania. The ministry of energy and minerals regulate the operations of TANESCO.Its headquarter is in Dar esSalaam Tanzania and its main objective is to supply electricity to Tanzania and Zanzibar.
The following are the applicability of Michael porters five mode of competition in relation to TANESCO as our company of reference. Michael Porter provided a framework that models an industry and therefore implicitly also businesses as being influenced by five forces. Michael Porter's Five Forces model is often used in strategic planning.
Michael porters five frame work of competition and their applicability can be explained as follows;
Threats of new entrants or barriers to entry; profitable markets that yield high returns will attract new firms, this result in many new entrants which eventually will result a decrease in profitability for all firm in an industry. Unless the entry of new firms can be blocked by incumbents, the abnormal profit rate will trend towards zero [perfect competition].one reason new entrants pose such a threat is that they