The Impact of Financial Indicators on Porter’s Five Forces Model. A Case Study on the Telecommunications Industry

Financial indicators represent ways of capitalizing on accounting information targeting various levels, namely the structure of uses and financing, liquidity, solvency, resource rotation/management, profitability, or financial balance. They can be determined and interpreted either at individual level, by the company, defining the main coordinates of its financial management, or at global level, by the sector, highlighting its trend and emphasizing the convergences and divergences regarding financial strategies between the companies that compose it. At sector level, corresponding to the market economy, a factor that should not be neglected is the competition between companies. In this sense, Porter’s five forces model is a strategic analysis tool that evaluates the attractiveness and degree of competition in a field by examining five factors: rivalry between competitors, bargaining power of customers, bargaining power of suppliers, threat of substitute products, and threat of new entrants. The model contributes to understanding how the market structure influences the profitability and competitive positioning of companies. This article aims to highlight how the financial indicators of the main telecommunications companies influence Porter’s five forces model within this industry.