Application of Porter’s Five Forces Model in the BPM Industry

Crux of strategy formulation is coping with the competition. Business strategies are conceived as well as rectified in reaction to the variations in the extrinsic business environment. But, it is difficult to analyse the competitive environment. However, an ample number of industries are exercising Michael Porter’s 5 Forces Model, which is an ascertained and extensively employed analytical tool for anatomising competitive environment. This case study exhibits the application of Porter’s Five Forces Model for embellishing the performance at Xara Inc. Preliminarily, this case commences the readers to Porter’s Model in a nutshell. Furthermore, it manifests an overview of the BPO industry, transformation of BPO to BPM, general industry trends and brief about Xara Inc. Eventually, comments on the dilemmas encountered by Xara Inc. before functioning this model and then the improvements evinced after employing the Porter’s Model has been revealed. This case study is based on secondary data, collected through the sources viz. books, scholarly research journals, website of professional bodies such as NASSCOM etc. Authors were associated with the firm (Xara Inc.) and witnessed the application & implementation of Porter’s model in the firm. However, lot of insights to comprehend the dilemmas and enhanced performance were achieved through the observations and interaction with the employees of the firm.