Definition of Competitiveness of the Enterprise Using the Five Forces of M. Porter

Abstract

The paper considers the analysis of five competitive forces of Michael porter for the building organization from the point of view of applying the computer-aided design (CAD) system. Nowadays the software is developed that provides automation of routine procedures and operations, such as preparation of textual documents, conversion of technical drawings, graphical images, etc. To determine the level of competitiveness, the methodology for industry analysis and strategy development of entrepreneurship has been applied. This methodology was developed by Michael Porter in Harvard business school in 1979. The analysis is conducted to identify opportunities and hazards that the company may face in the industry. M. Porter proposed the "five forces model", which is substantiated by the fact that the higher the pressure from the selected factors is, the smaller the company has the opportunity to increase its profits. Having changed its strategy, the company can influence these forces in its favor. Competitive forces are grouped into five areas: 1) market power of suppliers; 2) market power of buyers (customers); 3) appearance of substitutes; 4) entry of new participating enterprises; 5) competition. The forces and their influence on building organizations are described. The analysis is presented in tabular form.