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Porter and Weihrich: Two Faces of a Strategic Matrix for Developing the Portuguese Molds Industry

Listed author(s):
  • João Leitão

    (Universidade da Beira Interior)

  • Carlos Deodato

    (Universidade da Beira Interior)

The Portuguese producers of Molds are in its majority of small or medium dimension, competing in highly competitive international markets and using processes, which incorporate new technologies. The present study aims to identify the strategic quadrants for developing the Portuguese Molds Industry, in order to overcome the growing competition originated by the producers located in East Europe, and in Asia. In this sense, a strategic diagnosis is made, using, in first place, the model of the five competitive forces of Porter (1986) and, in second place, the TOWS Matrix of Weihrich (1982). Through the identification of the five competitive forces, we find out that the suppliers have a considerable bargaining power, and that the threat of new enters doesn't exercise great pressure on the industry, in analysis. Furthermore, the determinants of the rivalry are strong, whereas the threat for substitutes is weak. According to the application of the TOWS Matrix, we retain that this industry presents a good competitive positioning in the international markets; nevertheless, she has to bet in the formation of a specialized labour force, and in the promotion of a trade mark image, in order to increase the market power, and to overcome the direct competitors.

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Paper provided by EconWPA in its series Industrial Organization with number 0506007.

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Length: 22 pages
Date of creation: 14 Jun 2005
Handle: RePEc:wpa:wuwpio:0506007
Note: Type of Document - pdf; pages: 22
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