The porter’s five forces is an important strategic tool that is used by companies and businesses to understand industry dynamics as well as identify important aspects of the external environment. As a result, the porter’s five forces model is used for decision making purposes, and facilitates companies in its planning and goal setting processes. The strategic model assesses the external environment through five important aspects related to the industry – namely: rivalry, buyer bargaining power, supplier bargaining power, threat of new entrants, and threat of suppliers. These factors help decision makers in understanding the industry position, and as well as growth potential and trends in the industry to better steer the business. The following section will briefly detail porter’s five forces for Cumberland Metal Industries C Model Year 1979 Negotiations with Beta Motors.
