The Five Competitive Forces That Shape Strategy - Essay Example

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The Harvard Business Review saw a very complete compilation of the five competitive factors that affect strategy building for businesses in 1979, authored by Michael Porter. This article brought out some of the salient and most important points of business strategy and…
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The Five Competitive Forces That Shape Strategy
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Download file to see previous pages We study and form our respective opinions around this article through this paper.
The article begins with a short summary of the five factors described in one-liners, after which the main body of the article introduces the reader to the roles of a strategist and how it has become exceedingly narrowed down to checking competitor plans in recent years. While the author articulately puts forward his thesis of how the underlying forces of profitability remain the same in all business types, he also points out that strategy building is not a function of the competitor prices and strategy alone. In short, right from the introduction, he makes it very clear that for any business type, using the five factors for strategy building is highly important to its success (Porter, 1). We agree to this point that strategy building is a very important aspect of business development and that Porter’s observations are entirely important for strategy building. But we also cannot but consider the fact that not all these factors are important in cases of all businesses. And that the model proposed by Porter is not universally true as there are other factors that can be included in it too. Let us first take a quick round up of Porter’s five forces before we dwell on the other factors.
All of the above mentioned points are directly relevant to businesses of any size. However, given the market scenario and the changes that we have seen in it over the past couple of decades, it is difficult to say whether the model is universally true or self-sufficient. Here are a few examples for us to note and learn from:
This force was first expressed in the work of Barry Nalebuff and Adam Brandenburger, when they used the game theory to add the concept of complementors to the model as a force that can govern strategy development for a business. According to their predictions, ...Download file to see next pagesRead More
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