Conclusions: possible ways forward
This paper has shown how Porter’s five competitive forces model could be much developed by:
� Combining it and interrelating it with other tools such as growth drivers and PEST factors.
� Examining other systemic interdependencies. � Prioritizing it with the competitive force
field type of analysis. � Examining the sub-forces at work. � Examining the dynamics and the impact of
the industry mind-set. � Segmenting markets to examine the varia-
tions within the competitive landscape.
Porter’s model thus offers significant potential for both further conceptual development and for practical application. Other areas, which are beyond the scope of this paper, are its application to:
1. Acquisition decision-making. 2. Alliances. 3. Account management, especially in under-
standing the industry structure, critical success factors, options and areas of possi- ble company value-added customers.
4. Negotiating large contracts. It would be of considerable help here both in decision- making and in deal-making.
Perhaps because the technique was born in economics and perhaps because it was so very successful initially, significant attempts to apply it across a range of practical manage- ment issues or to evolve it further appear to have failed to occur.
Unless we in the academic world are pre- pared to reinvigorate old concepts and in an imaginative way as proposed in this paper, techniques like Porter’s five forces might be destined to fall into the same lifecycle phase
Porter’s five forces model 227
Copyright © 2006 John Wiley & Sons, Ltd. Strategic Change, August 2006 DOI: 10.1002/jsc
228 Tony Grundy
of maturity and decline as real businesses.This would be a shame because the model, if applied properly and more subtly, will gener- ate very important insights for managers. Without significant rethinking and develop- ment they may become forgotten due to new m