Despite the above described well-structured model, Porter’s five forces theory has been subject of great critique. Its main weak points result from the historical context in which it was developed. In the 1980s, cyclical growth characterized the world economy. Therefore, main corporate aims consisted of profitability and survival. A primary premise for achieving these aims has been optimization of strategy in relation to the external environment. In the 1980s, development in most industries has been stable if compared with today’s dynamics.

In general, the significance of this model is reduced by the following factors: 1. In the economic sense, the model supposes a classic perfect market. The more an industry is controlled, the less significance insights the model can give. 2. The model is best used for analysis of simple market structures. A well-defined description and analysis of five forces are very difficult to use in complex industries with multiple interrelations, product groups and segments. A very narrow concentration on certain segments of these industries brings the risk of missing significant elements. 3. The model supposes relatively static m

arket structures. This is not the case in today’s dynamic markets. Technological progress and dynamic market entrants from start-ups may utterly change business models, entry barriers and relationships, as well as the supply chain. 4. Porter’s five forces theory may be used for the further analysis of the situation. However, it will not present some significant advice for preventive actions. 5. Porter’s model is based on the competition idea. It supposes that companies try to achieve competitive advantages over competitors in a market, as well as over suppliers and consumers. Porter’s theory does not take into consideration such strategies as strategic alliances, electronic linking of data systems of companies, a value chain, virtual enterprise-networks, etc.