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What Porter five forces analysis does not tell about the industry?

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Michael Porter five forces analysis tells us about the competitive view of an Industry mostly how attractive is an industry to invest, my question here is what are the weaknesses of this analysis and what are the points which this analysis does not cover.

posted Mar 20, 2013 by Salil Agrawal

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1 Answer

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Porter five forces covers only the industry analysis, it is not a tool for the company analysis. For example it can tell that airline industry is an unattractive industry but within the airline industry we have Southwest or Singapore Airlines which are doing good and attractive but the same can not be analyzed using Porters five forces.

answer Mar 20, 2013 by Nora Jones
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