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Porter's Competitive Model is a model used to describe the interaction of external influences; specifically threats and opportunities that affect an organizations strategy and ability to compete [Laudon & Laudon, 2005, p. 103].
Starting at the center of the model is the current industry, which includes General Motors and their typical competitors, such as, Ford, DaimlerChrystler, and the Japanese [Laudon & Laudon, 2005]. All of these traditional competitors are able to produce cars at a much cheaper cost than General Motors.
Looking at the supplier portion of the competitive forces model, part of the reason General Motors was unable to produce cars inexpensively in comparison to their competitors was that they were producing a lot of their own parts...
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