Diploma in logistics

management
course:
assignment:

six forces modal

Prepared by:
Batmapriya Sures LA4-242-20
Muhammad Aliff Ikmal LA4-239-20
Nur Fadhilah Binti Ahmad LA4-217-20
Defination of six forces modal
 The six forces model is used to evaluate a
firm's strategic position in a particular
marketplace.
 The model emerged in the mid-1990s and built
on the original five forces model.
 The five forces model considers how potential
new market entrants, suppliers, customers,
substitute products, and complimentary
products can influence a company's
profitability.
 The sixth force of Porter’s model is competition
-The media industry was impacted by intense
competition due to the proliferation of online
content in the 1990s.
 The six forces model can also be used to
determine the market's overall attractiveness
in relation to profitability and competition.
Who invented the
Six Forces Model?
What is six forces modal
Andrew Grove is
credited with
adding a sixth Competition
force to the
original Five Forces
model. Complementary New
Product Entrants

Six
Forces
Model

Substitutes End
Users/Buyers

Suppliers
 What are the advantages of Six Forces Model

01
It’s simple to understand and use

It covers a lot of specific issues that directly

02
relate to your growth

03
It factors in complementary products, unlike Five
Forces

04 You can do it on your own, as a team in person,

or as a group remotely

05
It provides a better overview of your
competition
 The Criticism of six forces model
• That buyers, competitors, and suppliers are unrelated and do not interact and collude
• That the source of value is structural advantage (creating barriers to entry)
• That uncertainty is low, allowing participants in a market to plan for and respond to
competitive behavior.

Other criticisms include:

• It places too much weight on the macro-environment and doesn't assess more specific
areas of the business that also impact competitiveness and profitability
• It does not provide any actions to help deal with high or low force threats (e.g., what
should management do if there is a high threat of substitution?)

-Kevin P. Coyne and Somu Subramaniam

What preparation should be done before a Six Forces Model?
The Six Forces Model can be a really powerful way to analyze your environment if
you ensure you prepare with the following:

 Prepare for the session by researching the latest news on competitors

 Defining the marketplace you intend to analyze
 Be equipped with the information of why previous customers have left you
 Understand how customers use your product or service
 Understand complementary products or services used by your customers

If you’ll be doing Six Forces Model in a group, remember to share this information
in advance.
What are some of the limitations of the Six Forces Model?
As with Five Forces, there are some limitations to Six Forces Model :

 There’s no analysis of your business, it’s purely external

 There are no actions out of this framework.
 It’s a short term analysis where the information can rapidly change
 It’s a high level view on the marketplace.
 There are no factors outside of the market being considered.
 Products can have a great impact on your business without being strictly
complementary.
What’s the best medium for running a Six Forces Model based
session?

Six Forces Model is best developed as a group project.

Due to the range of forces, the team who analyze the
framework should be composed of senior sales,
marketing or product individuals, generally who are
outward looking and are aware of the latest market
developments.
THANK
you 