Using Porter's Five Forces analysis to drive strategy

Abstract

Abstract This paper aims to provide practical pointers to scholars, students, and practitioners about applying Porter's Five Forces analysis, a longstanding, comprehensive, and practical framework in strategic analysis. The paper combines two methodologies: a review of prior studies and the inductive methodology. The latter involved drawing on examples from different industries and contexts, specifically the Indian passenger car industry. The elaboration of the subtleties and contextual factors and identification of specific pointers in this paper will help managers understand the critical aspects of their environments and formulate an appropriate strategy for their context.

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