Hi class,

As the answer to the question appears to be lengthy, a portion of the answer is explained
herein. The Porter's five forces model introduced by Michel E Porter is an analytical framework,
which is used as a tool for analyzing the competitive situation of an organization in consideration
of the industry or sector where it operates. There are many advantages and widespread
utilization of the model; still, it is not free from its drawbacks, and limitations as detailed below.
1. Too general Analytical framework
This is similar to SWOT analysis, which is used as a starting point for a deeper
investigation of organization performance. Simply it provides a list of factors that can
be advantages or disadvantages to an organization.
2. Pre-disposition to subjective result
This framework promotes the identification of qualitative data. For the untrained
individuals, sources of these qualitative data may be based on hearsay, anecdotes,
or superficial observations.
3. Lack of quantitative decisions
This model lacks the aspect of how to make a ranking of the factors in terms of
importance. Although quantitative analysis can be integrated into this model, it does
not have a built-up mechanism on how to do so.
4. Susceptibility of biased results -
Proper training in research and analysis, and evaluation is required. This model does
not provide or highlights where the biases can affect the integrity of the analysis. In
the absence of this, it can produce shortsighted results.
5. One dimension framework -
This tool ignores collusion among suppliers, competitors, buyers, strategic alliances,
and competitive dynamics. Hence it is a simple and one dimension framework that
disregards complexities.
6. Unsuitable for complex firms-
Another notable limitation of this model is that it cannot be generally applied to an
organization with an extensive portfolio of products or those operating in multiple
industries and products. This framework is more suitable for a firm operating in a
single industry or market or specific line of business.
7. Non applicability to a non-profit organization
 This framework cannot be applied to non-profit organizations as in this frame,
competitors/ rivalry, a threat to product substitutes, etc., are identified.

Regards,
Bibhuti

Reference: https://www.konsyse.com/articles/porters-five-forces-analysis-drawbacks-and-
limitations/