MGT 7033:

STRATEGIC MANAGEMENT
PORTER’S FIVE FORCES
&
TOWS MATRIX

GROUP 3:

MEMBERS MATRIC
NUR SHAKIRIN SABRI S16100189

NOR AFIDAH BT ABDULLAH S16100190

RAMADEVI A/P RAMACHANDRAN S16100191

NURDIANA IZWANI ZAINUDDIN S16100195

 OVERVIEW

• Introduction
- External Environment
• Porter’s Five Forces
• TOWS MATRIX
 EXTERNAL ENVIRONMENT
• Definition:
• Outside factors that effect organization.
• Factors of External Environment:
• Directly Interactive – immediate & 1st hand impact.
• Indirectly Interactive – indirect & distance impact.
FIRM’S EXTERNAL ENVIRONMENT
 PORTER’S FIVE FORCES

Porter's five forces analysis is a framework that

attempts to analyze the level of competition within
an industry and business strategy development.
 PORTER’S FIVE FORCES

• Porter's five forces analysis determines the

competitive intensity and therefore attractiveness
of an Industry.
• Attractiveness in this context refers to the overall
industry profitability.
• An "unattractive" industry is one in which the
combination of these five forces acts to drive down
overall profitability.
• A very unattractive industry would be one
approaching "pure competition", in which available
profits for all firms are driven to normal profit.
 PORTER’S FIVE FORCES

Porter's five forces include:

• three forces from 'horizontal' competition:
1. the threat of substitute products or services,
2. the threat of established rivals, and
3. the threat of new entrants;

• and two forces from 'vertical' competition:

1) the bargaining power of suppliers and
2) the bargaining power of customers.
PORTER’S FIVE FORCES
- A graphical representation of Porter's five forces
PORTER’S FIVE FORCES
 PORTER’S FIVE FORCES

• A clear example of this is the airline industry. As an

industry, profitability is low and yet individual
companies, by applying unique business models,
have been able to make a return in excess of the
industry average.
 TOWS MATRIX
TOWS matrix helps companies determine
strategic alternative by examining a variety of
external opportunities and threats and compare
them to the strengths and weaknesses of the
company.
TOWS MATRIX
TOWS MATRIX
TOWS MATRIX
TOWS MATRIX
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TOWS MATRIX
TOWS MATRIX