Porter’s Five Forces are framework that is used to evaluate and assess organization competitiveness strength and positioning in an industry with an aim of formulating strategies (Huggins & Izushi, 2011). From the Krzyzanowska & Tkaczyk article in 2002, Porter’s Five Forces tool can be useful to managers in the non public education institution in Poland. The following is my argument to support the usefulness of Porter’s Five Forces;
To begin with, there is threat of substitution that exists in the whole education industry. Parents can opt to take their kids to public school where there is no payment of tuition. Therefore, there is a threat to the non public institution from the substitution with the public institutions. Secondly, competitive rivalry exists in the Poland non public institutions. The existing institutions in the non public industry have there distinguishing features in respect to their competitors that they think that it gives them a competitive position. Third, there is little supplier power in the industry. There are many non public institutions offering the education service in the country. Another factor is that there is increasing buyers’ power. The number of buyers demanding the eduction services is decreasing as a result of declining population. This fact is increasing the buyers’ power to control prices (Magretta, 2012). Lastly, there are little barriers to entry in non public education industry in Poland. The new institution then gradually acquire distinguishing structures that enable it compete with existing institutions
In conclusion, the Poland non public education sector is competitive and it important that organizations analyze their position in the industry by use of porter’s five forces.
Huggins, R. & Izushi, H. (2011). Competition, Competitive Advantage, and Clusters (1st ed.). Oxford Scholarship Online.
Krzyzanowska, M. & Tkaczyk, J. (2012). Competitive landscape of the educational market: A managerial perspective. International Journal Of Management Cases, 14(4), 238-251.
Magretta, J. (2012). Understanding Michael Porter (1st ed.). Boston, Mass: Harvard Business Review Press.