Porter’s Five Forces for Veolia Waste Management in the Netherlands
Porter’s five forces
Porter’s five forces model is used to analyse and explain whether a country can sustain different market levels that enable profits. The design was invented by Porter in his book “Competitive strategy: techniques for analyzing industries and competitors” (1980). The model is widely used around the world by many companies to analyze a market’s likelihood to bring profits and plan a strategy before they venture into that particular market (Porter, 2010). Porter identified the five unavoidable forces that play a crucial role in the shaping of a market and the planning of policies. They are frequently used by many companies to measure profitability, competition intensity, and attractiveness of an industry or a market. “Understanding the competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition (and profitability) over time. A healthy industry structure should be as much a competitive concern to strategists as their company’s position.” (Porter, 2010 p.240)
According to Porter, the cradle of profitability is similar regardless of industry. In that light, the structure of a business is what mainly drives profitability and competition - not the products, maturity, or the high or low tech of the company.
