Selected aspects of the evolution of the industry analysis

Porter's five forces is a significant tool of analysis of industries. It helps evaluating variables of industry profitability and assessing firm performance. Using the framework, managers can take a decision as to which industries they can effectively compete in and position their companies to reduce the adverse effects of the mentioned forces. According to the critics, the five forces model is limited to its static nature. The enrichment of the model introduced by Brandenburg and Nalebuff took account of the dynamic nature of the competitive environment of industries. According Brandenburg and Nalebuff to the five forces can be extended by adding complementors as an additional competitive force. The incremented model goes beyond Porter's win-lose analysis by cooperation with complementors enlarging the market size