Porter’s Five-force Analysis MBA Strategic Management Module

Question: Discuss about the MBA Strategic Management Module. Answer: The value of porters five-force analysis in a non-profit organisation is the smooth operation of the same. In most of the case, lack of transparency is the key idea that creates issue in donation and charity. This might be explained through an example like an organisation that is working for street children the services offered to the children has to be good. This must be ensured by the organisation that the children are receiving the services that have been promised while collecting the charity from different people (Dobbs 2014). This would ensure that even competitors would not be able to hamper the value of the non-profit organisation. Porters Five-force analysis is not only applicable of the profit making organisation but also the non-profit organisation. They might not be in the race of profit generation but in the market, there are number of facts that are essential. The threat of new entrants can decrease the donation that one organisation used to receive. The threat of substitute products can be the better services that other organisation might offer. Better service in limited money can lead to switching (Magretta 2013). In case of the bargaining power of the buyers, it might be said that buying the social impact is necessary. Similarly, in case of buying power of suppliers the charity donator must be convinced of the positive face value of a non-profit organisation. Competitive rivalry can be found when there is competition is offering better service from the non-profit organisations that are presently operating. In short, the service has to be supreme. References Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis templates.Competitiveness Review,24(1), pp.32-45. Magretta, J., 2013.Understanding Michael Porter: The essential guide to competition and strategy. Harvard business press.