Limitations Porter's 5 ForcesDino
, Student (University), United Kingdom
One limitation that clearly stands out is the model does not consider micro, meso or macro economic factors
For example: an airline provides flights to various destinations across many countries. However, due to economic crisis the likelihood is that some flights will get dropped, even though there is nothing wrong with the service.
Therefore, Porters 5 forces relies heavily on other models such as SWOT Analysis
, STEEPLE Analysis
and the Arthur D. Little Matrix
to fill in the gaps. As a result, there is not one matrix that covers everything.