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This is what i know about Porters Model. It is the systematic analysis of forces in the industry environment using the Porter framework is a prowerful tool that helps managers to think strategically. It is important to recognize that one competitve force often affects the others, so that all forces need to be considered and thought about when performing industry analysis. Indded, industry analysis leads maangers to think systematically about the way their strategic choices will both be affected by the forces of industry competition.
1) Risk of entry by competitors
2) bargaining power of suppliers
3) bargaing power of buyers
4) intensity of rivalry among established firms
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Linear objective function & non linear objective function.
Consider - a small manufacturing company which produces high quality furniture has provided the following data: 2
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