Analyzing Firm’s External Competition Environmentswith PEST and Porter’s Five Forces Framework: Is it Still Useful? Evidence from An SME
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January 30, 2019Analyzing Firm’s External Competition Environmentswith PEST and Porter’s Five Forces Framework: Is it Still Useful? Evidence from An SME
ABSTRACT: This paper applies PEST (Political, Economic, Societal, and Technological) analysis and Porter’s Five Forces framework to small-medium sized enterprises with H Hardware Co. Ltd as an example. The results of the analysis is consistent with what the firm’s executives perceived about the business environments of their firm. This, to an extent, evidenced that PEST and Porter’s Five Forces framework seem still useful even after Porter’s consulting firm (which used his Five Forces method significantly)’s bankruptcy. Therefore, this paper shows, in a sense, that Porter’s personal consulting firm’s financial failure does not mean the failure of Porter’s Five Forces framework.
Key Words: SMEs, strategic analysis, PEST, Porter’s Five Forces