The Application of Porter’s Five Forces Model on Organization Performance: A Case of Universities in Republic of Macedonia

Abstract

Strategic planning is fundamental in the process of deciding where an organization wants to find itself in the future and how it will get there. Strategic planning is a serious analysis of external factors that affect the success and failure of the organization and its activities and aims to solve the problems of the organization and strengthen internal factors. It contributes to the development of the capacity of the organization and to the efficiency in achieving the set goals and tasks. Porter five forces analysis is a framework that attempts to analyze the level of competition within an industry and business strategy development. It consists of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to reassess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability.