Michael Porter's Five Forces Model
- The Five Competitive Forces that Shape Strategy.Full
Text Available By: Porter, Michael
E.. Harvard Business Review, Jan2008, Vol. 86 Issue 1, p78-93, 16p, 1 diagram, 1
illustration, 1 graph, 1 map, 1 color;
(AN 28000138)Database: Business Source Premier
In 1979, a young associate professor at Harvard Business School published his
first article for HBR, "How Competitive Forces Shape Strategy." In the years
that followed, Michael Porter's explication of the five forces that determine
the long-run profitability of any industry has shaped a generation of academic
research and business practice. In this article, Porter undertakes a thorough
reaffirmation and extension of his classic work of strategy formulation, which
includes substantial new sections showing how to put the five forces analysis
into practice.
-
How Competitive Forces Shape Strategy.Full Text Available
By: Porter, Michael E.. Harvard Business
Review, Mar/Apr79, Vol. 57 Issue 2,
p137-145, 9p, 1 diagram; (AN 3867673) Database: Business Source Premier
This article discusses the nature and degree of competition in industry. The
essence of strategy formulation is coping with competition. Competition in an
industry is rooted in its underlying economics. The state of competition in an
industry depends on five basic forces: the threat of new entrants, the
bargaining power of customers, the threat of substitute products or services,
the bargaining power of suppliers, and the battle of industry players for
position among current competitors. The collective strength of these forces
determines the ultimate profit potential of an industry. Understanding the
underlying sources of competitive pressure provides the groundwork for a
strategic plan of action.
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