Porter's 5 forces analysis is a tool of strategic analysis of the competitive environment of a firm. Porter's 5 forces determine the competitive intensity and therefore attractiveness of a market. Indeed, the main objective of a company is to acquire a competitive advantage on its market. The weight of these five strengths allows the determining of the capacity of firms to realize a profit. If all the strengths are raised the possible profit will be limited. On the contrary, if the strengths are weakened, it is in theory possible to realize an important profit. Porter's analysis allows analyzing the situation of competition. This analysis is similar to other methods such as the analysis PEST but concentrates on a single DAS rather than on a product or a range of product. I have decided to take various examples such as the wine industry, and broadcasting (telecommunication, television) in order to illustrate my report. In the first part, I will try to give a definition of the term strategy and describe Porter's 5 forces. Secondly I will present Porter's 5 forces in current businesses, and in the last part a critique of Porter's 5 forces will be explain.
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