Department of Business and Management
Faculty of Management and Economics
Visayas State University
Mgmt138n- Introduction to Strategic Management
Exercise #3: External Audit
Conducting a Competitive Analysis Using Porter’s Five Forces Model
Objective: To analyze the competitive environment of your university using
Michael Porter’s Five Forces Model and assess how these forces influence its
strategic position in the higher education industry.
Instructions:
1. Work individually.
2. Use Porter’s Five Forces framework to examine the external
competitive environment of your university.
3. Identify key factors for each category and discuss their impact (High,
Medium, or Low) on the university’s competitiveness.
4. Present your findings in a table format.
Table 1. Example
PORTER’S KEY FACTORS DESCRIPTION IMPACT
FORCES (HIGH/MEDIUM/L
OW
Threat of
New
Entrants
Bargaining
Power of
Buyers
Bargaining
Power of
Suppliers
Threat of
Substitute
Rivalry
Among
Competitors
After completing the table, answer the following:
5. Which of the five forces most strongly affects your university’s
competitiveness? Why?
6. How can your university strengthen its competitive advantage against
these forces?
7. What strategic actions (e.g., partnerships, program innovation, marketing)
could reduce threats or leverage opportunities?