What is the relationship between the five-forces model and a firm’s international business strategy? Provide examples to illustrate your answer.
Five-forces model is concerned with the five factors i.e. competitors, new entrants, suppliers, buyers and substitute products and their impact on profitability (Grundy, 2006). This greatly impacts the international business strategy as it affects the relationship between different organizations in the same industry. For example a company that is dealing with a product launch in the international market has to look at the existing competitions, the new organizations that are also trying to enter to the market with the same product, the suppliers and the power they enjoy within the market for their suppliers, the power of the buyer and the threat of the substitute products that can be used as a substitute the product that is planned to be launched in the international market.