5 FUERZAS DE PORTER

INTRODUCCION:

Companies currently develop in very competitive environments in which,

increasingly, it is necessary to be vigilant so as not to lose market share in
the Domain of Economic Activity (DAE). For this, it is essential to
continually analyze the competition to anticipate trends. Porter's 5 Forces
model or Porter's diamond is one of the best tools to understand the
competitive fabric of an industry.
Porter's 5 forces make up a study model of the competitive structure of an
industry in which the following are analyzed: the bargaining power of
customers, the bargaining power of suppliers, the threat from substitute
products, the threat that They represent incoming products and rivalry
between competitors. Thus, by analyzing these five forces, the company
can understand its position in a market and make strategic decisions .
DESARROLLO:

Defines the people in charge. First, the accounting department

will set the pace, but each area of the company must be
responsible for gathering the necessary data and creating its own
budgets. If you need resources for this part, here we show you
how to create a budget in Excel.
Isolate the key points of your budget. On the one hand, sales and
production; and, on the other, the estimated costs and income.
Collect all the information. Each department must collect and
consolidate all the information necessary to prepare its budget.
And here come in both statistics and analysis of factors as
important as competition or the labor market in which we operate.
Prepare your master budget. Compile all department budgets and
documents, including such vital movements as the balance sheet,
income statement or cash flow.
Analyze and approve the budget. Once the document is closed,
you must evaluate it or send it to be evaluated by the indicated
people in the company. They could request changes or
adjustments if they observe any errors and, finally, they will
approve the budget.
CONCLUSION:

Porter's 5 Forces model, named after its creator, Michael E.

Porter, forces us to focus our analysis on: customers, suppliers,
substitute products, potential new competitors and competition.
By analyzing the threats from these competitive forces, we can
determine our position in the market and understand why we have
our current market share.

In Porter's diamond, these five elements (customers, suppliers,

substitute products, potential competitors and competition) are
analyzed separately but interconnected, since each of them affects
the level of competition of the organization. Thus, we can define
Porter's diamond or Porter's 5 forces analysis as the representation
in the form of a diamond diagram of the elements that determine
our position in an industry.

Thus, Porter's five forces reflected in the diagram are:

Bargaining power of customers

Bargaining power of suppliers

Threat of substitute products or services

Threat of entry of new competitors

Rivalry of current competitors.

Porter's 5 forces analysis model is used, in essence, to analyze the

competitive environment of an industry. Thanks to Porter's
analysis we will be able to:

Visualize the current map of our competition and measure the

profitability of an industry.

Develop a better competitive strategy and business strategy.

Anticipate trends and detect market niches.

Develop a competitive marketing plan

Create a product or service that is not easily replaceable