Porter diamond model
What is the Porter diamond model slide for?
Competition determines the attractiveness of the industry for the influx of investments and the ability of enterprises to have a higher level of profit. Porter’s competition model has become the most popular one for the analysis of the competitive situation. Therefore, here we represent to you the Porter diamond model template.
The model proposed by M. Porter is used by most managers of efficiently operating organizations.
Using this Porter’s five competitive forces model, one can assess the degree of competition in the industry, and determine the possibility of reducing profitability. The purpose of Porter’s model is that the organization should search for a field in which it is protected from competitive forces, or where it is possible to use these forces to your advantage.
The Porter model allows you to evaluate the competitive environment by means of five competition forces, which are represented in the form of certain groups that affect the position of the enterprise in the industry. Thus, the value of each competitive force and their impact on the activities of the enterprise are evaluated.
According to this model, the level of sector competition depends on the impact of the five competitive forces on the activities of the organization:
- attempts of the companies from other industries to catch consumers with the help of substitute products;
- competition between companies in the industry;
- the threat of new competitors;
- market power of raw materials’ suppliers and means of influence used by them;
- market power of products’ consumers and means of influence used by them.
These five competition forces, according to the proposed model, determine the profitability of the business, as they affect the prices that companies can dictate, the costs they incur, the amount of capital investment needed to compete in the industry.
The advantages of the slide:
- Excellent quality. This premade unique slide is of high quality. It means that in case of displaying it on any high-resolution device, there won’t be any visible defects.
- Editable vector elements. All built-in tools can be edited in a few clicks.
- A multipurpose slide. This slide is a perfect useful tool for any business, company, or firm.
- A premade easy-to-use template. It allows you to save time and simplify working process. Choosing this template, your task will be just to insert information.
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