An Analysis of Michael Porter’s Five Competitive Forces that Shape Strategy in the Ever-Changing Landscape Defense Contracting Field

  • 2016

An Analysis of Michael Porter’s Five Competitive Forces that Shape Strategy in the Ever-Changing Landscape Defense Contracting Field

Author:
Brian Noland
Abstract:

The field of defense contracting is one of the more unique fields within the modern American economy. From 2003 to the current day, Defense Contractors have become a pivotal and crucial part of our national defense and security strategies. This need sparked a new market and along with that, an ever changing landscape of different market trends and needs. This paper sought to identify how these changes coincide with Porter's Five Competitive Forces to give a better understanding of how the defense contracting field, while unique, follows the incontrovertible truths of all business markets. Through my findings, I was able to identify multiple instances where Porter's factors lined up effectively with changes to the industry. From increased competition due to reduced market viability, the threat of substitutes and new companies entering the market, to the change in power dynamic from the contractors to the government, all of these factors prove that in order to best navigate the complex world of national security solutions, one must observe proper business principles to succeed.