M. PORTER'S FIVE FORCES MODEL AS A TOOL FOR INDUSTRIAL MARKETS ANALYSIS

Abstract

Purpose. The aim of the article is to study the peculiarities of using M. Porter's five forces model to analyse industrial markets and behaviour of firms in modern conditions. Methodology of research. Scientific works of scholars on the functioning and analysis of industrial markets are the theoretical and methodological bases of the research. The following general scientific research methods are used in the article, namely: comparison and theoretical generalization methods to study the five forces of industry competition; analysis and synthesis methods to identify the advantages and disadvantages of M. Porter's five forces model, abstract and logical methods to formulate the results of the industrial market analysis; a graphic method to illustrate the factors of industry competition. Findings. The article investigates the essence and constituent elements of M. Porter's five forces model of industry competition. The existing interrelationships between the intensity of rivalry, threats of new entrants, threats of substitute products, bargaining power of buyers and bargaining power of suppliers are considered. The advantages and disadvantages of the five forces model are identified and characterized. It is proposed to additionally use other methods of strategic analysis of industrial markets in modern conditions of the development of economic relations, taking into account the peculiarities of M. Porter's five forces model practical application. Originality. The study of M. Porter's five forces model of industry competition was further developed, in particular, the advantages and disadvantages of using this model for the analysis of industrial markets in modern conditions were considered. Practical value. The obtained results of the research can be used in the process of analysing industrial markets, researching the behaviour of firms and choosing strategies for their prospective development on industrial markets in modern conditions. Key words: industrial market, M. Porter's five forces model, competition, industry competition, competitive advantages, competitors, firm behaviour.