Using Porter's Five Forces & PESTLE Analysis for Business

This presentation provides an overview of Porter's Five Forces and PESTLE analysis, two essential frameworks for strategic business analysis. It explains how Porter's Five Forces helps in understanding the competitive environment by examining the bargaining power of customers and suppliers, the threat of new entrants and substitutes, and the competition among existing players. The presentation further details PESTLE analysis, which aids in identifying macro-environmental factors like political, economic, social, technological, legal, and environmental aspects that impact business operations. The impact of these forces and factors is discussed, using Marks and Spencer as an example, highlighting the importance of adapting to market conditions, managing costs, and embracing e-commerce. The presentation concludes that these analyses are critical for effective decision-making and anticipating future risks, emphasizing the need to understand competitors and develop unique strategies. Desklib offers a range of solved assignments and study resources for students.

PRESENTATION

Table of Content
• Introduction
• Porters five forces
• Impact of porters five forces
• PESTLE Analysis
• Impact of PESTLE Analysis
• Conclusion
• References

Introduction
Business may be defined as an entity that engage in various
activities such as industrial, commercial and promotional in
order to earn profit. It is needed to stay competitive in the
dynamic business environment so as to remain sustainable
in the industry.

Porters Five Forces
This model helps in analysing the competitive environment
of a company. It includes five forces that affects the
business operations.
• Competition among existing competitors
• Bargaining power of customers
• Bargaining power of suppliers
• Threat to substitute
• Threat to new entrant

Impact of Porters five forces on
business
The analysis shows that there would be a lower risk of new entrants as it requires huge
amount of investment along with facing difficult competition against the reputed company
like M&S. It also helps in understanding the opportunity which generates higher profits.
The porter's five model also assess the marketing conditions in order to attract the target
customers.
The company can identify the threats of substitutes that are available in the market. The
customer wants to buy the quality product but by paying minimum price.

It is a type of tool which helps a company in
identifying the macro forces that the company is
facing. It helps in identifying the changes in the
external factor and how they can impact on the
business operations. By doing this, it enables a firm
in making strategic planning which makes the
enterprise larger. It is a better way of identifying the
market that influence the business enterprise.
PESTLE Analysis

Impact of PESTLE Analysis
There are various factors that influences the business such as tax rates, inflation rates and political
instability. Change in the inflation rates is the main key driver for marks and spencer as this
declines the profitability of the whole industry. Along with staying competitive the company
should also focus on maintaining a reasonable price for its products or it may loose its existing
customers. Increase in the price of raw material will also impact on the profit margins of the
company. The other key driver for the company is that it had adopted the e-commerce business
model that enables customers to get their products delivered direct to their homes.

Conclusion
From the above PPT, it was concluded that porter's five forces and PESTEL analysis are the
two most crucial factors in success of an enterprise. This may help in making the effective
decision along with anticipating the future risk by identifying the future uncertainties. The
company must know who are the competitors , what is unique in their products and how
effective their strategies are.

REFERENCES
• Pádraig, B., 2017. An analysis of michael E. Porter’s competitive strategy: techniques for
analyzing industries and competitors. Macat library.
• Valmohammadi, c. And mazaheri, M.S., 2017. Clarification of factors affecting the decision
to use cloud computing among IRIB employees based on a technology acceptance
model. BI management studies, 5(19), pp.105-124.
• Helmold, m., 2019. Tools in PM. In progress in performance management (pp. 111-122).
Springer, cham.