External Microenvironment

Porter’s Five Forces
In order to be able to understand the contexts in which MaNet operates and to respond effectively to changes in these contexts, a Five Competitive Forces analysis was chosen as a tool for examining the so-called external microenvironment. According to Michael E. Porter, the author of the revolutionary text ‘Five Competitive Forces’, the job of a strategist is ‘to understand and cope with competition’ (2008). While in the for profit sector Porter’s Five Forces model is a tool for measuring the profitability potential, the non-profit organizations use Porter’s analysis in order to assess the impact on the effectiveness and efficiency of the performance and develop strategies accordingly. Potential impacts on the ability to implement the plan by the Development Agency of Epirus S.A., have to be taken into account while planning (Lloyd 2010; Porter 2008; Bryson 2004:39).

Porter’s Five Forces provides an overview of the non-profit sector with a focus on Greek reality and funding trends. The public sector is shrinking, while social benefit actions can be implemented with funding from other pools and without the contribution of the Hellenic state. Hence a new model has been established: projects are being conducted outside the State office, which simplifies a wide range of procedures, while the state is being perceived as a reliable partner or beneficiary. Hence, funds have the most power in terms of the MaNet Project. The rivalry in the sector is rather low and offers a lot of opportunities for cooperation.