REVIEW “The five competitive forces that shape strategy”
HOMEWORK
Subject: Strategy Formulation and Implementation
Name: VõYếnNhi
ID: BABAIU12157
Generally, the case of “The five competitive forces that shape strategy” is a constructive, thought article and it is valid in the field of planning strategy of a business in a competitive environment. As the name of it, the article of Michael E. Porter clarifies five forces that can form the strategy of an organization based on the perspective of an incumbent, or a company already present in the industry. They are Threat of Entry, Power of Supplies, Power of Buyers, the Threat of Substitutes, and Rivalry among Existing Competitors. In addition, this article also describes the factors that impact significantly to the strategy of business such as Technology and Innovation, Government and Complementary Products and Services as well as shows the alters in present business structures.This information is very important for every organization because it helps company find out the roots of an industry’s current profitability, predict the competition and profitability over time, and create strategy for company. Each industry has a unique configuration of the five forces.Therefore, the task of the strategist is that use those knowledge of five competitive forces and link to the company’s situation for creating the best strategy to achieve the good performance in competitive environment.
The author separates this research into four chapters including: Forces that Shape Competition; Factor, not Force; Implication for Strategy; Competition and Value. Two first parts show elements in the modern business environment and problems that an organization has to deal with. Based on these foundations, the third part suggests stages in process of establishing a strategy. And then, the last one emphasizes the importance of examining the competitive environment by break-down five competitive forces and factors. This arrangement is very clear and helps readers to organize the main points in the
Subject: Strategy Formulation and Implementation
Name: VõYếnNhi
ID: BABAIU12157
Generally, the case of “The five competitive forces that shape strategy” is a constructive, thought article and it is valid in the field of planning strategy of a business in a competitive environment. As the name of it, the article of Michael E. Porter clarifies five forces that can form the strategy of an organization based on the perspective of an incumbent, or a company already present in the industry. They are Threat of Entry, Power of Supplies, Power of Buyers, the Threat of Substitutes, and Rivalry among Existing Competitors. In addition, this article also describes the factors that impact significantly to the strategy of business such as Technology and Innovation, Government and Complementary Products and Services as well as shows the alters in present business structures.This information is very important for every organization because it helps company find out the roots of an industry’s current profitability, predict the competition and profitability over time, and create strategy for company. Each industry has a unique configuration of the five forces.Therefore, the task of the strategist is that use those knowledge of five competitive forces and link to the company’s situation for creating the best strategy to achieve the good performance in competitive environment.
The author separates this research into four chapters including: Forces that Shape Competition; Factor, not Force; Implication for Strategy; Competition and Value. Two first parts show elements in the modern business environment and problems that an organization has to deal with. Based on these foundations, the third part suggests stages in process of establishing a strategy. And then, the last one emphasizes the importance of examining the competitive environment by break-down five competitive forces and factors. This arrangement is very clear and helps readers to organize the main points in the