Question

PORTERS 5 forces for agricultural chemical company NUFARM?

Answer 1

Porter Five Forces Analysis is a strategic management tool to analyze the industry and understand underlying levers of profitability in a given industry. Agricultural Chemical Company managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Agricultural Chemical Company competitive advantage and long term profitability in the Agricultural Chemicals industry.

In his revolutionary article - "Five Forces that Shape Strategy", Michael Porter observed five forces that have a significant impact on a firm's profitability in its industry. These five forces analysis today in the business world is also known as -Porter Five Forces Analysis. The Porter Five (5) Forces are -

The threat of New Entrants
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat from Substitute Products
Rivalry among the existing players.

Porter Five Forces is a holistic strategy framework that took strategic decision away from just analyzing the present competition. Porter Five Forces focuses on - how Agricultural Chemical Company can build a sustainable competitive advantage in Agricultural Chemicals industry Managers at Agricultural Chemical Company can not only use Porter Five Forces to develop a strategic position with in Agricultural Chemicals industry but also can explore profitable opportunities in whole Basic Materials sector.