The Five Competitive Forces That Shape Strategy
ฝัง
- เผยแพร่เมื่อ 29 มิ.ย. 2008
- An Interview with Michael E. Porter, Professor, Harvard University. Porter's five competitive forces is the basis for much of modern business strategy. Understand the framework and how to put it into practice.
Who is also here because of uni?
Al Belfort pray for me as my end semester exam is due tomorrow
@@studyfayz566 Same here :)
My professor explained this so poorly, let’s hope I’ll understand it now
im here bcs of corona
me
He designed the whole strategy framework which all the world business' are using and he just finishes his speech with " we keep learning" Damn it!
kesinlikle..! :)
Yes, the most beautiful part............
It's the story of humanity!
Professor Porter pioneered the management strategy framework Esra. Formal essay writing @esra baykal
haha
(F1) Bargaining power of customers.
(F2) bargaining power of suppliers.
(F3) Threat of new entrants.
(F4) Threat of substitutes.
(F5) Rivalry among competitors
+Mariseli DIAZ MARIN thank you was about to rewind.
you are so clutch bless your soul
you fine ass woman. thank you
God is a woman.
This is just a spin-off of SWOT.
I pour concrete for a living and even I found this extremely useful.
I think pouring concert for a living is an admirable job.
I strongly beilive that you are closer to how the economy is moving based on how bussy your job is. Very differently than 9 to 5 inside a cube. Combining your job experience and latest news you can have a very clear picture of whats to come and do the necesarry arrangements.
I read three of his books. makes you want to put a bullet in your brain from boredom but they teach a lot.
Thought I was alone
Why are you putting me off
Facts
Welcome to the world of Accounting, Tax & Finance 😅
Love his books, was literally my bible(s) studying MBA 🤘🏻🤩
I love that I don't have to pay harvard prices to get such great instruction.
I was a 12 year old boy when Michael was interviewed in this video...and now I am in a B school trying to better understand business through this video. Thanks Michael for your timeless sharing of knowledge.
Sameeeeee👌👌👌
I was actually three
I was 7 years
By now, you may have graduated? 😊
@@AndrewTheTransformer yes indeed!!
So the guy's still alive... damn you genius. The five forces are really useful
Thats what I thought too XD
Useful ...
For exam
One of the great minds in Business. Clear, concise and relevant to todays practices.
The world will always recognize you and your contributions in this field. You merit the title of Professor.
Man, knowing to articulate in such a graphic and yet precise manner is a hell of a trait. Makes it really interesting to listen to this.
The article being mentioned here is actually the 3 assigned reading in my Strategy course for the Executive MBA program - 10 years after it was published. I think Porter knows his stuff!
This points out that it is important to look at the impact these forces have on margins, which often gets lower scrutiny than direct competitors who impact sales. A business needs to think about all of these forces because they all make an important contribution to profits or, if managed poorly, losses.
"purpose of strategy is alignment" - love it!
What a profound session on real business world scenarios, times are changing but fundamentals are the key to progression 5 Forces are those factors.
Michael Porter is a great gift to the business community.
Mr. Porter, after enlightening us advise us that we keep learning. Thank you, Professor.
Gosh, these 2 are so likable and knowledgeable. I love the grounded reality and practicality of the discussion. No fluff or pipe dreams.
Dr. Porter is my absolute professional mentor. Thank you!
I have his two books - Competitive Strategies and Competitive Advantage... very useful in my life in business. Unfortunately, my senior managers and company owners don't read these types of books, so there goes the business that they manage.
Carlo Jose , I can understand!
Story of a lot of people's lives. So quit and start your own company Carlo! You can do it!
i just read competitive advantage, should i read competitive strategies? What are the differences, competitive advantages has like an intro from the previous book
You should try to gift them an audio book subscription of these two classics in this time & era, incase you are all still colleagues :)
Easier said than done.
What an incredibly talented and knowledgeable man!
The man is an intelligent genius alive today !
Porter 5 forces tool is the most use tool for industry analysis. Great to have a genuis like Porter in academic.
David Wilson really
*useful tool and academics.
Hope u don’t mind me correcting your mistakes
How about PEST tool? I think it's useful too. PEST and Poster's five forces model are great for external analysis while product life cycle and BCG matrix are suitable tools for internal analysis.
@@hautran1030 PESTLE is for macro environment/indirect contact.
P's 5 forces is for micro environment/direct contact.
@@hautran1030 Check Michael Peng's "The Institutional-Based View as a third leg for a Strategy Tripod" where he suggests looking at..
(1) The surrounding environment(in the form of "institutions": humanly devised constraints - can be political, ) in addition to--
(2) The competition within the Industry and ..
(3) The firms own resources & capabilities..
-to form a 'tripod' framework for business strategy.
Simply put, BCG & VRIO for internal resources & capabilities (3), 5 Forces for industry competition (2), PEST(EL) for the environmental analysis.
I see it as going from 2D to 3D bringing in depth in addition to height and width :)
I could listen to him my whole life
Thanks a lot. Really helps me in my dissertation. Such a great man Prof. Porter.
Awesome session with Prof. Micheal E. Porter. Porter's five Forces Model is a generalized model that can be applied to every sector in a micro and macro environment
This interview is still given as example at top bussiness programs. I am amazed
Brilliant video that clarifies application of the five forces in actual business environment.
This is awesome interview and amazed to learned how robust and practical this model over three decades.
This is absolutely an eye-opener and helped me to streamline my options and evaluate my high-level decisions to guide the company on a profitable path. On the other hand, this was a very good tool to maintain in an organization to navigate the company in the right direction with the external environment challenging the business in a high magnitude, While the PESTEL analysis is highlighting the Macro environment. Thank you, MR. Porter. I'm currently I'm an MBA student at London Metropolitan University and working as a General Manager for a leading FMCG & Manufacturing organization in Sri Lanka. Thank you once again Sir.
Five forces which definitely is acceptable and going to be accepted for longer. This includes basically for the start ups which literally need to understand those forces which makes the business strategy better and competitive and delivers higher value proposition.
Excellent video that clarifies application of the five forces in real business environment.
Absolute badman on the business school scene. Mad respect to this brute.
A great video which explains the basics of this model quite comprehensively. Although this framework is really robust in many cases, it does fail when a disruptive innovation comes into play. When applying this model a consultant or marketing manager should not only take the current substitutions of the market but should also be aware of disruptive innovations coming from new markets. This mistake has led to many MNE's repelling a certain business area because of their unawareness of developments in other industries.
great insight
I've written about this guy in so many assignments at Uni, had no idea he would talk like that. What a ledge!
Love the concept of 5 competitive forces. And I love also the empirical evidence (air industry).
He is the genius who reshaped my concepts about competition analysis.
this is great i love this and i enjoyed this during my MBA thats when my heart was changed totaly and fell inlove with strategy which made me take the strategy subject futher into my PhD
The way Mr. Porter described how business rivals could thrive in the industry together made me think of the different species of finches on the Galapagos Islands. Each of the finches has their own different niche that they fulfill on the island, they exist in the same area, but they can thrive on different types of food. Business rivals can do this as well, they exist in the same space as their competitors, but they each offer something unique to the customer allowing them to thrive.
th-cam.com/video/6T07gwa8eb8/w-d-xo.html ,,
Potter professor is known for his contribution in business strategy, finally see him here, i really agree with his idea that companies should not battle mindlessly which will lead to zero-sum game, the clever way is to widen the market share of whole industry they are in.
Love this video and the complexities of how competitive forces shape strategy...great job
this video reali helped with completing my strategy assignment. first time i've seen porter too.
I studied marketing theory and proactive in Australia.One of the most important concept is the porters five forces
Michael Porter is a living legend in business, if only I could be as intelligent as you are.
Practical, Simple, LOGICAL. I got a giggle of his phrase...."" that Airline industries are among the least of profitable industries known to man..." and then adds... "..it's always puzzled me." AND uses them as an example for his forces; brave and brilliant! I like that he acknowledges that there is STILL constant monitoring to take place even after applying the 5 forces. Always be ready to learn more.
Also found his comment about the "least profitable industry known to man" extremely funny...
I like how this video was made, and presented.
A nice video of Michael Porter's Five Competitive Forces, it is beneficial to increasing the knowledge about strategy.
Thank you for sharing, it helped me with my coursework
Amazing video! Thanks professor.
Reviewing for one of our Masters in Information Assurance courses...great understanding!
Good, we take many information to incorporate during our MBA programmed
Great video, loved the overall snarkyness and some of the subtle aside commentary.
In respect to the 5 competitive forces, I think we would be hard pressed to find anyone who would agree that these 5 factors are critical when it comes to assessing the potential success of a company. What I would like to know is, how can we go about quantifying these forces so that they can be strategically used to develop quantifiable steps towards approaching each force?
Very apt. This applies perfectly to business till today.
Learned this model in 2009. Using it since than. Its great.
Wish to complete a course under his teaching such easy going love and honor from deep of my heart
Michael (Harvard Business School), thank you for talking with us about your greatest achievement, Porter's Five Forces, as it relates to each of our businesses plans. 8:50, "Figuring out what your industry is and drawing the right boundaries." Even when we all help build the first Lunar Boom Town on the moon, I'm sure much more than half of us will be using Michael Porter's Five Forces to friendly-compete with each other in a non-zero-sum sort of way. Great-unknown bless you and your loved ones, Michael.
Management class!!!
Learning strategic management and innovation on my final year at uni and OMG. They make Porter's work of 5 forces, generic strategies and generic groups look almost irrelevant.
Read:
*Strategy Safari (Mintzberg)
*Innovator's Dilema (Christensen)
*Schumpter's Creative Destruction theory
*Dynamics of Strategy (Duncan Robertson) - also happens to be my teacher
'The The dirty little secret of strategy industry is that it doesn't have any theories of strategy creation' - Hammel (1997)
See this video is fun as i have inspired by his book and masterpiece.. Thanks Professor...
My favorite analytical tool. Wow!
Classic old school thinking - thanks for the contribution to strategic thinking from an external perspective - use with Adizes Business Life Cycle explanation for another external perspective...
I can believe that I m watching that... just because of my exam. Damn!!!
This was for my management class :D
The intensity of competitive rivalry..For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc. number of competitors,- rate of industry growth,- intermittent industry overcapacity , exit barriers , diversity , informational complexity and asymmetry ,- fixed cost allocation per value added , level of advertising expense
Chauncy Jere totally agree
Very insightful and a nice possibility to see and hear Prof. Porter:-)
the five forces, explained by porter himself???THIS is awesome....
Excellent discussion on this topic! Thanks!
Excellent questions by the interviewer. He gets right to the meat and potatoes.
Makes sense because most times we just jump into business with excitement and sentiments. Look before you leap.
Stupenda lezione di gestione aziendale e di business!!!
excellent analysis of the competitive forces !
Excellent questions from the interviewer !
An astonishing interview
One of the excellent models to understand the external market ...!!
Who is here in 2024 learning for the selection test?
very inspirational and insightful interview so far around topics of strategy, the explanation is very well-articulated. It makes me wanna jump right into a start-up business and play the game! so delighted to see this!
The Five Competitive Forces are key to understand the competition around any business. An understanding of actions done by competitors is an opportunity for the organization to strategize better! The Porter's Model is the right tool to help business leaders to scan the business environment (both external and internal) and respond accordingly
Thanks for this...big big help for my course work.
This is a good Post, Very helpful to visualize new strategies and understand the drivers of profitibility and competition.
Lalith Moorjani
Piscataway
Marketing and strategy Guru ..Michael porter
In reference with Porter's five forces include
- three forces from 'horizontal' competition as followings;
1.the threat of substitute products.
2.the threat of established rivals.
3.the threat of new entrants.
- two forces from 'vertical' competition as followings;
4.the bargaining power of suppliers.
5.and the bargaining power of customers.
For his remarks, 'horizontal' is prone to deal with external sources meanwhile the remainder are internal threats combined in terms of 'vertical'.
So stay away from sexy industries. Ok, time to go write my test.
Kkkkkkkk
Thanks for sharing this with us!
I reading this for my Management Information System right now..
Competitive forces and strategies shape the very foundation of business principles. The model can be applied to every business environment that I have encountered. The principles are priceless. Students seem to enjoy learning these concepts.
Can you please share a link to his article that he refers to in the interview. Thanks
Ya, totally agree with you ! I have to do my assessments by using his strategies.......
Short Summary for The Five Competitive Forces That Shape Strategy
Michael Porter discusses the five competitive forces that shape strategy in industries, using airlines as an example of intense price competition.
- The Five Competitive Forces That Shape Strategy
- Understanding the five forces can help analyze industry profitability.
- Airlines industry has unfavorable economic drivers
- Porter's Five Forces framework is applicable to any industry and helps focus on underlying fundamentals.
- Positive-sum competition is where companies compete on different attributes, services, features, and customer support relevant to particular groups of customers.
- Industry analysis is the starting point for strategy formulation.
- Understanding industry needs to be broadly understood in the organization
- Strategy documents should not be kept secret from employees, suppliers, and competitors.
This guy is a legend if you know.
What a brilliant man. He looks really good for his age too hehe
Strategic management allows an organization to be more proactive than reactive in shaping its own future.
www.bizeducator.com/benefits-of-strategic-management-to-organization/
Competition ought to be according to true justice in order to benefit the participants the most.
Pay for what is worth it, so your own side earns more, punish for what is harmful and your own side works with less problems.
These are general principles that come into play in your own thinking: correct feedback = objectivity, in the working of your own group: rational arrangements, and in your own society: good standard of living & a strong nation with a wise culture - all these for your own good!
Very good explanation
Thank you for your good information.
I have some new understandings for the five forces now!
Great video. I wonder would he say the same thing about the internet today...it has been called the great equalizer for the little guy.
I also like that he speaks on competition. I believe in this new economy, you should only be in competition with yourself. Yes, you must know what the industry is doing, but you need to individualize and decide what part you can claim for yourself and then keep upgrading from there.
The article to which this discussion relates is in the January 2008 issue of Harvard Business Review. Reprint R0801E
great video-Porter parabens!!!!
I wish I would have viewed this interview before I took my quiz in my business class.
Thank you for your advice sir
What a magnificent video and great explanation