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A major prerequisite for achieving these objectives has been optimization of strategy in relation to the external environment. At that time, development in most industries has been fairly stable and predictable, compared with today's dynamics.
In general, the meaningfulness of this model is reduced by the following factors:
? In the economic sense, the model assumes a classic perfect market...
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The more an industry is regulated, the less meaningful insights the model can deliver.
? The model is best applicable for analysis of simple market structures. A comprehensive description and analysis of all five forces gets very difficult in complex industries with multiple interrelations, product groups, by-products and segments...
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