Evaluating Porter's Five Forces Model in Technology-Driven Markets

This discussion post critically assesses the statement that Porter's Five Forces Model is outdated for fast-moving, technology-driven global markets. The author agrees with the statement, arguing that the model's limitations include its qualitative nature, lack of quantification of factor influence, incompatibility with diversified companies, and failure to address sources of sustainable benefit. The post references academic sources to support its claims, highlighting the model's limited applicability in contemporary global markets. Desklib offers a platform for students to access similar solved assignments and resources.

Running head: INTERNATIONAL BUSINESS
International Business

INTERNATIONAL BUSINESS 2
Table of Contents
‘Analysis tools, such as Porter’s Five Forces Model, are no longer useful because they are out of
date when applied to fast-moving, technology-driven global markets’..........................................3
References........................................................................................................................................4

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‘Analysis tools, such as Porter’s Five Forces Model, are no longer useful because they are
out of date when applied to fast-moving, technology-driven global markets’.
I am agreed with the above statement such as ‘Analysis tools, such as Porter’s Five Forces
Model, are no longer useful because they are out of date when applied to fast-moving,
technology-driven global markets’. The key limitation of five force model is that it only
facilitates as an initial aspect for more depth evaluation regarding the performance of the firm.
This model is specific to provide the checklist of external factors that could be advantageous or
detrimental to the company. It is also addressed that this analysis tool is mainly measured with
respect to the qualitative assessment of a firm’s strategic positions (Zhao, et. al., 2016).
This model does not facilitate a system for quantifying how each factor may influence the
performance of the company in fast-moving, technology-driven global markets. This model does
not have a system to assess which of a factor among all forces have high effects. It is also stated
that incompatibility with diversified companies is another limitation of the five forces model.
Specifically, this model cannot be practiced for assessing the external condition of the company
with diversified products as well as, a service offering of the company. Hence, it could be stated
that porter’s five force model is outdated while applied to fast-moving, technology-driven global
markets. Another criticism related to the five force model is that it does not support the company
for addressing the sources of sustainable benefit (Aithal, Shailashree, and Kumar, 2016).

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References
Zhao, Z.Y., Zuo, J., Wu, P.H., Yan, H. and Zillante, G., 2016. Competitiveness assessment of the
biomass power generation industry in China: A five forces model study. Renewable Energy, 89,
pp.144-153.
Aithal, P.S., Shailashree, V. and Kumar, P.M., 2016. ABCD analysis of Stage Model in Higher
Education. International Journal of Management, IT and Engineering, 6(1), pp.11-24.