2.2.3 Where can Porters Model be applied?

Porters model is suitable for any company regardless of its size and the industry in which it operates. According to Porter, the five forces model should be used on industry level. It is not designed to be used with regards to industry group or industry sector level.

As you will see strategic groups weakens the importance of porters five forces, as an industry consists of a large diversity of companies. The most important issue in corporate strategy is the selection of industries (lines of business) in which the company should compete; and each line of business should develop its own, industry-specific, five forces analysis.