Why is Porter's five force analysis also known as 'Collaborative Competitive Model' or 'Extended Rivalry Model'? Explain.

Porter's five force model is also known by other names like extended rivalry model or collaborative competition model due to its nature. The five forces, as propounded by ME Porter is as below: So far we understood competition as rivalry between existing firms, however, other four dimensions were also added by Porter involving buyers, suppliers, substitutes and potential entrants. Since these four newer dimensions appeared, the name extended rivalry automatically comes in. In all, to understand competition between firms, five forces (as depicted above) come into play in different business situations, although, not all forces may occur concurrently. The other name collaborative competition comes from the collaborative models embedded in this analysis. Addition of the time factor may result in forces not competing against each other but collaborating, this enables the managers to get clearer insight in the existence and nature of past, present and future (anticipated) interaction between firm and its industry environment. We also address critical analysis of the original concept, stating that it does take into consideration a firm's potential collaborative relations with determinants of industry environment. Porter's framework brims with the spirit of competition wherein each stakeholder is constantly jockeying to get the better of a relationship, strategic or tactical. The industry environment and technological attributes have changed so dramatically over the last decade that the traditional, including Porter's, view of firms and industries not talking to each other is no longer valid. There is a clear need to redefine the Porter Model to meet the new environmental needs in terms of collaboration, rather than competition. In the new paradigm, the five forces of collaboration can be stated as: the opportunity of market expansion with competition; the synergy of substitute products or services, the collaborative power of customers (buyers), the collaborative power of suppliers, and the balance of collaborative and competitive rivalry, all of these analyzed within the framework of a networked industry definition. The Important differences of the collaborative model with the competitive model are as follows. It sees competition not as evil but as a driver of market expansion. It views new products as a bundling opportunity and as a transition to enhanced customer experience. It also views customers and suppliers as being collaborative, rather than combative, with the firm. Finally, it proposes that collaboration and competition coexist in a firm, with the balance between the two forces determining the growth energy of the industry. In the collaborative model, industry is not narrowly defined as in the Porter's competitive model. For example, the Porter model encourages us to define the automobile industry as narrowly as car, truck, bus and motor cycle industries on the basis that each product is a not a substitute for the other. The collaborative model, on the other hand, considers all passenger serving industries as one, not only whether these are car, bus and motor cycle but also inclusive of supportive industries such as navigation, electronics, telecommunication and entertainment.