Week 4: Clear on Porter's 5 Forces

Although it may seem like a constant battle between companies to be number one may be a bad thing, competition actually creates better products and thus benefits the companies and thus the consumers. Overall, competition is a great thing in the marketing world! And thanks to Porter's five Forces, I now have a greater understanding as to how competition is influenced by both other companies and consumers.

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There's always going to be competition between companies because everyone wants to be number one, but what type of pull do others really have in this constant fight? Porter's Five Forces names, well... Five Forces.

The first force is the core force, which is the competition within the industry itself. In my opinion, it's more the subject of the force. This force is the only force influenced by the other forces.

The other four forces include:
Threat of new entrants
Threat of substitutes
Bargaining power of suppliers
and Bargaining power of consumers.

They're all pretty self explanatory, which is definitely what made this part of this week's lesson so easy to comprehend. The model is created in greater deal on this site: http://www.quickmba.com/strategy/porter.shtml. Great site and great explanation of the topic. In the end, successful marketing comes down to this strategy.