Importance of Porter’s Five Forces Analysis in Industry Analysis

This self-reflective essay discusses the importance of Porter’s Five Forces Analysis in industry analysis. It provides insights on different industries and their competitive advantages. The essay covers the steps required for industry analysis and the factors that influence the efficiency of a firm in the market.

Running head: SELF REFLECTIVE ESSAY
Self Reflective Essay
Name of the Student
Name of the University
Author note

1SELF REFLECTIVE ESSAY
Introduction
The self-reflective analysis will be discussing about my experiences on the same. Proper
illustrations of the different points are required to be analyzed in an effective manner in order to
gain my understanding on the Porter’s Five Forces Analysis will be illustrated and analyzed in an
appropriate manner to provide a brief overview on the condition of the same on the different
kinds of industries starting from telecom or retail industry as well.
Self-Reflective Analysis on Industry Analysis
While conducting the industry analysis, I have analyzed that the entire analysis of
industry as this helps the owners of the business in estimating the profit which is generated from
the different kinds of business operations. Furthermore, in analyzing the industry, I have learnt
that industry analysis is a kind of business function which is completed by the individuals such
as the business owners in order to assess the current business environment.
Moreover, I have tried in analyzing the various economic pieces of the market place and
how these pieces help and is being used in gaining competitive advantage in the entire economy
as well. With the help of the industry analysis, I tried to gain knowledge on the impact of the
different kinds of competitors or threats from the competitors. I tried to analyze the same with
the implementation of Porter’s Five Forces Analysis.
For instance- I have learnt that in Apple, the entire Porter’s Five Forces Analysis is
required to be analyzed effectively. I tried to compare the bargaining and threat from the
different competitors between Apple and Samsung. I noticed that there is huge level of rivalry
among Apple along with the different competitors. However, from the analysis, I gained the

2SELF REFLECTIVE ESSAY
knowledge that Apple has weak force in terms of bargaining power of the suppliers along with
threats from the different substitutes.
With Porter’s Five Forces Analysis, I tried to analyze the forces which shape the
competition within a respective kind of industry. As Woolworths falls under the retail segment,
therefore, I tried to gain knowledge on the various aspects such as bargaining power of the
suppliers, bargaining power of buyers, threats from the different substitutes, threats from the
different new entrants along with rivalry from the other firms.
From the Porter’s Five Forces Analysis different kinds of industries, I tried to analyze
and gather different information which is as follows:
Bargaining power of the suppliers can be high or low in nature wherein I tried to analyze
that there are different kinds of industries in which there are different kinds of aspects which are
being followed and it is different for different sectors as well. For instance- In case of Samsung,
the bargaining power of suppliers is strong and this is how the suppliers increase their prices in
an efficient manner.
Furthermore, I learnt that bargaining power of the buyers can be low or high in various
industries. I tried to analyze that the different types of aspects are being judged in this segment
which is inclusive of the nature of the buyers along with the purchasing power of the buyers as
well. In this scenario, I learnt that there are few factors such as how to drive the prices down in
order to become more competitive in nature.
From the industry analysis, I tried to analyze and identify that the threat of the different
substitutes is low in nature which is a positive aspect in respect. Furthermore, I tried to analyze
and understand that there are very less organizations in the competitive market which can be the

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competitor of and this is one of the main competitive advantages which is gained by the
company in the market.
Furthermore, I tried analyzing that the threat from the new entrants is moderate in nature
for various kinds of industries as the different markets is capital intensive in nature and this
affects the overall profitability of the firm in a negative manner as well.
Lastly, I gained knowledge on the industry rivalry which is considered high or low in
nature as I tried to identify that there is huge competition in the entire market which is the
generic drugs market.
From the viewpoint of Porter’s Five Forces analysis, I tried to gain knowledge on the
different types of aspects of the same. The nature of the different kinds of threats along with
bargaining power of the buyers and suppliers are being generated on the basis of the different
industries effectively.
Furthermore, I tried to gain knowledge on how to analyze the competition of the different
types of businesses in the marketing environment. I learnt that Porter’s Five Forces Model
analysis helps in identifying the different threats along with bargaining power of buyers and the
suppliers in the market. While conducting the entire porter’s five forces analysis, I learnt few
aspects which are required to be considered while analyzing the threats and other aspects in the
five forces model.
Firstly, the brief overview of the industry is required to be ascertained which will provide
us with the type of industry and the competition which can be faced by the company in the
competitive marketing environment as well. Secondly, the trends and the patterns of the growth

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is required to be analyzed that have been existed within the entire industry as this will provide a
brief overview on the rivalry from the other competitors.
Furthermore, I learnt and identified that the different kinds of factors are required to be
identified which will helped me in briefing on the different kinds of influence of such factors on
the entire pharmaceutical industry in an appropriate manner. The different kinds of financial,
human resource factors are taken into consideration which helps in managing the overall
efficiency of the firm in the industry and gain more competitive advantage in the market as well.
Conclusion
Therefore, from the above self-reflective analysis, I tried to learn and identify the
importance of the Porter’s Five Forces Model analysis on various kinds of industries which will
be effective in managing the different kinds of aspects.
Lastly, I tried to analyze the different steps which are required to be analyzed in the
industry analysis of the company to gain much knowledge on the aspects such as availability of
the different kinds of financial resources or human resources which plays a major role in
managing the different kinds of operations in a much more appropriate and effective manner.