Answer To: the subject name of this assignment is Business Strategy. there are 3 articles from that you have to...
Avni answered on May 01 2021
Grundy, T. (2006). Rethinking and reinventing Michael Porter's five forces model. Strategic Change, 15(5), pp.213-229.
Introduction
The paper “Rethinking and reinventing Michael Porter’s five forces model” talks about the unrealized potential of impact of five forces model on businesses. The Porter five forces model was introduced when Michael Porter distilled the existing micro-economic literature into five forces or causal variables. These variable include Bargaining power of buyers, Entry barriers, Rivalry among competitors, Threat of Substitutes and Bargaining power of suppliers. By virtue of different explanations, the author has tried to state why this model could not achieve the intended success and, at the same time he has given different takes on how this model could be developed further.
Key areas addressed
The key issues tackled in the paper deal with porter five forces and their lack of adoption by mainstream managers. The author talks about various reasons behind the lack of popularity of this model which include highly analytical nature of the model, criteria of evaluation lacking practicality, nature of the model being highly prescriptive and rigid along with the fact that the visual structure of the model is relatively difficult to assimilate and simplify for the managers. Towards the later phases, the author has also talked about the competitive dynamics and how they impact the five forces model. These dynamics are explained by giving examples of the scenarios where if one competitive force becomes favorable, others can turn unfavorable.
Key knowledge gap addressed
In the eyes of the author, Porter five forces is a valuable concept but, it had the potential to be developed further and, during the course of the paper, the author has suggested different approaches for the same. In order to fill the gap author suggested different ways for analysis like – prioritizing the model within a force field analysis format, breaking down individual forces to the micro level, transforming the framework to make it more dynamic, applying the model on a segment to segment basis across the business. In further analysis, the author has tried to establish an interdependence between porter's five forces, PEST analysis and, growth drivers models. As per the author on analyzing all of these together, managers can make better use of the five forces model.
Key findings and conclusion
On analyzing this paper, we can identify the factors which can help us further understand and use five forces model. By examining the interdependencies between different elements of the five forces model we can become better equipped at applying this model on the micro-economic levels. In order to achieve this, the reader has to be fully aware of the sub-forces which are at work. Managers can realize that by understanding the competitive dynamics, they can make better decisions about how the industry will change in the future and plan accordingly. The strength of this paper lies in its innovative take on an age-old concept and taking it to a level where there is further research possible in terms of its application and use beyond the area of economics. Talking about its weak points, this paper has tried to tackle too many factors at the same time which sometimes give the feeling of derailment from the initial objective of the research.
Mintzberg, H. (2014). Crafting Strategy. Harvard Business Review. [Online]. Available from: https://hbr.org/1987/07/crafting-strategy [Accessed April 30, 2019].
Introduction
The article discusses different aspects of strategy formulation using a number of examples from different industries. The author has tried to simplify the...