Saturday 13 September 2008

Porter, M.E.,(2008),The Five Competitive Forces That Shape Strategy
















This is a renewal of Porter’s well known book, “How Competitive Forces Shapes Strategy”(1979). It was his first HBR article, and it started a revolution in the strategy field. In this article, he corroborating “Five Force” with some date and useful examples and adding common misunderstandings, provides professional strategists with a framework to make their business strategies.

The five forces are followings;

(present value-chain force)
・ Bargaining Power of Suppliers
・ Bargaining Power of Buyers
(future rivalry force)
・ Threat of New Entrants
・ Threat of Substitute Produce or Services
(present rivalry force)
・Rivalry Among Existing Competitors


These are very sophisticated, but difficult to find because these force can not be measure figure, and there are no clear definition each of these force. In addition, there is no firm originated information. I think this is not enough for make strategies.

No comments: