Monday, September 15, 2014

Porter's 5 competitive forces Excel simulation

Porter's 5 forces simulation (click to download Excel file)

Firm's performance depends on 5 competitive forces according to Michael Porter. Value, created in the industry can be captured not only by the firm itself, but also by competitive forces. For example, if bargaining power of supplier is too high (and it can dictate high prices for input goods), it can destroy company's profits