Q1 ：explain the model, what type of the model addressing?

use relevant examples

(a)(b) Review the strengths and limitations of the ‘5 Forces’ model

(c) Present and discuss an industry example where the model continues to be highly valid.

(d) Present and discuss a second industry example where the model fails to generate many useful insights.

This question requires you to systematically exhibit your understanding of the 5 forces model in terms of:

(a)The underlying logic;

Definition:

Porter’s five forces include – three forces from ‘horizontal’ competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from ‘vertical’ competition: the bargaining power of suppliers and the bargaining power of customers.

发展，内部的逻辑？：

Porter (1979) used these forces as the analyzing factors of micro environment, to compare with the more general terms of macro environment which other previous models often used.

In the Porter’s Competitive Forces Model, Porter emphases that competitions not only exist in the competitors that provide similar products or services, but also come from other competitive forces in the industry, such as buyers, suppliers, new entrants and substitutes (Turban, 2010) .

(d) The industries where the model breaks down.

electricity industry—monopoly

bargain power is extremely pool

smartphone industry: too many kind of smartphones, it is hard to define the ‘industry’, the line begins to blur