Porter's Five Forces has several limitations. Firstly, it assumes a classic perfect market. The model is based on the economic situation of the 1980s and does not take into account new business models such as the digital economy and e-commerce. Secondly, it overlooks the influence of government and public policy. Thirdly, it does not consider the impact of innovation and technological change. Lastly, it focuses on the competitive environment and ignores other macro-environmental factors such as social, technological, economic, environmental, and political factors.
What’s the best way to turn business challenges into strategic opportunities? With a structured case...
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