Philippine E-Journals

Application of Porter’s Five Forces in Assessing the Competitive Advantage of the Motorcycle Industry

Juanito Dacula | Bob Agustin Gelacio

Discipline: Education

 

Abstract:

In the modern economy, competitive advantage needs to be maintained in every sector, from small local businesses to enormous multinational corporations, for them to advance in the competition. This study determined the relationship between the application of Porter’s five forces on the competitive advantage of the motorcycle industry. The research used a descriptive-correlational research design and a purposive sampling technique. The data were gathered from one hundred twenty-five (125) top and middle-level managers of motorcycle dealers. The level of the application of Porter’s five forces of motorcycle dealers in terms of the bargaining power of suppliers, bargaining power of customers, existence of substitutes, threats of new entrants, and competitive rivalry in the industry is high. Moreover, the level of competitive advantage of motorcycle dealers in terms of financial and non-financial aspects is also high. The findings indicate that the variables have a significant relationship, which means that when the level of the application of Porter’s five forces increases, the level of competitive advantage also increases.