Designing Marketing Strategy Using the Five Competitive Forces Model by Michael E. Porter - Case of Small Bakery in Croatia

Development of marketing strategy of the company has to be based primarily on the results of the analysis of industrial structure. The best known framework for analysis and the analysis of structural features of industries – Five competitive forces model by Michael E. Porter, was used in this paper aiming at designing marketing strategies and the development of sustainable competitive advantage for one Croatian small bakery concerning the influence of five forces on the whole industry. The interpretation of the findings enabled owner of analyzed subject: to determine the attraction of bakery industry, to measure perceptions of the strength of competitive forces, to identify the existing competitive advantages and key success factors in the further development, to formulate appropriate marketing strategies and to predict future movements in the bakery industry. Although Porter’s model is a simplified picture of the forces that affect the profitability of certain industries, results of this paper have undoubtedly shown that Porter’s model is valuable even in the small business sector. Taking into account the contemporary dynamics and unpredictability of the turbulent market conditions, the model will surely continue to be one of the main tools in strategic analysis of different industries, but also the specific business entities, regardless of their size.