rprise industry competitive analysis, developing basic competitive strategy. However, the five forces model has limitations side. First, it did not specifically consider the growth in the number of demands or needs. Second, this model does not explicitly explain the role of government.
HaxAC / Wilde D (2010) pointed out that Porter's five forces model analyzes the different actors weigh their pros and cons of pursuing the interests of the process, ignoring the possibility that the parties win-win cooperation. In addition, the customer will be referred to as the five forces model buyers, and as a business of Cubic, and small customer i is seen as the core of enterprise economic activity. They also believe that Porter's five forces model of competition between existing competitors this one as a core industry structure analysis, competitor activity over concerns may lead to limitations of their vision, should try to be creative to find unique features to differentiate it from its competitors positioning rather than pure imitation. In addition, Porter competitive strategy can be understood as an economic enterprise as a means to achieve sustainable competitive advantage in a particular industry taken. And many scholars have pointed out, competitive strategy should depend on all aspects of the company's internal resources and external threats, differentiated competitive advantage, considering only the external competitive environment is not comprehensive.
Porter's five forces model does not specifically consider the growth in the number of demands or needs. There is a big difference between the industry in terms of its features and structures, industry competitive analysis from the first to grasp the whole industry in the most important economic characteristics. In any industry, the number one demand or increase in demand is the most important economic characteristics. Number of demand reflects the market size, growth in demand reflects the market growth rate and the growth of the industry in the current cycle, the stage (early stage of development, the initial stage of rapid growth and early maturity, saturation and stagnant or declining phase). Industry Life Cycle impact on the competitiveness of enterprises cannot be ignored. Industry competition analysis must pay particular attention to changes in the industry dynamics and the environment.
Porter's five forces model does not explicitly the role of government. Porter in "Competitive Strategy" also talked about competition in the industry, government forces. Government policy can be a major barrier to entry, the government can restrict or even block for potential entrants into the industry. In many industries, government is a customer or supplier, through implementation of the policy implications of industry competition. You can also limit the government's actions supplier or customer's behavior. The Government can also regulations, subsidies or other methods on the industrial situation in relation to alternatives.
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