Michael Porter’s Five Forces framework uses industrial organization economics to evaluate the attractiveness of an industry based on the overall level of competition within that industry. The more competitive an industry, the lower profits will be. Conversely, an industry with little competition is likely to be more profitable and, therefore, more attractive. We’ve already written on the Porter’s Five Forces generally. Now we’re looking at each of the forces individually and in greater detail. Today we’re taking a closer look at the supplier power. (more…)
Posts Tagged ‘competition’
The Power of Suppliers: Are You At Risk?
Tuesday, April 18th, 2017Competitive Rivalry: What’s the Situation for Your Business?
Tuesday, April 11th, 2017
Michael Porter developed his Five Forces framework as an associate professor at the Harvard School of Business in 1979 as a way to help evaluate the attractiveness of different industries based on the primary five forces he saw driving the competitive environment of those industries. We’ve covered the framework generally, and now we’re looking at each individual force. Today we look at competitive rivalry. (more…)
Your Buyers Have Power: Maybe More Than You Think!
Wednesday, April 5th, 2017
In 1979, Michael Porter, an associate professor at Harvard Business School, developed what would become known as Porter’s Five Forces, a framework intended as a tool for determining the attractiveness of certain industries based on the level of competition within those industries. The five forces — threat of new entrants, threat of substitutes, supplier power, buyer power and competitive rivalry — collectively determine the degree of competitiveness within an industry. We’ve written about the framework as a whole. Now we’re looking at each force in depth. Today, we look at buyer power. (more…)
Identifying Product/Service Substitutes That Could Compete For Your Market
Tuesday, March 21st, 2017
Michael Porter revolutionized the world of business strategy when he developed his Five Forces framework, which evaluates the competitiveness — and resulting attractiveness — of an industry based on five competitive forces. We’ve discussed the framework previously, but now we’re taking a more in-depth look at each individual force. Today, we’re looking at the threat of substitutes. (more…)
Yes! You DO Have Competitors!
Tuesday, May 6th, 2014Every once in a while, we work with a client who believes that they do not have any competition–they are unique or their product is so exceptional that there is just nothing that competes. Those client conversations are always just a little bit awkward because, in reality, every organization of any size has competition of one form or another. Even an organization that is introducing a truly unique and innovative new product will deal with “indirect competition” (literally, “any other alternative” to what they have to offer). Acknowledging competition can be tough, but it’s a critical step in determining how to best “position” and sell what it is that you have to offer.
One way to think about this is to ask yourself the question: (more…)
Marketing Research: It’s All About Answering Questions
Tuesday, February 12th, 2013Can you think of the last time you were engaged in a marketing research project? If you’re like most business people, when you hear that question you’re probably thinking about some long-range, very intensive, data-gathering exercise that involved a lot of time, a lot of money and a lot of data analysis. And, yes, that is research. But we’re guessing that you are engaged in research far more frequently than you realize. Importantly, your research efforts don’t have to be full-blown initiatives that involve extensive quantitative research and analysis. Sometimes, yes–but, often, no. The trick is determining when you need to gather more information. And that comes down to two important steps: (more…)
Are You Prepared to Become Obsolete?
Thursday, September 27th, 2012While watching the local news my husband made a comment about the weatherman: “You know – who really needs him anymore? You can just look at the radar yourself any time you want to online.”
True. You can. Wonder if people going to school to be “weather people” have thought about that. Wonder if the schools that teach them have thought about that. And, most pertinent for this blog, wonder if all of us have given (more…)
Create, Co-create, Collaborate or Die
Thursday, August 2nd, 2012We’re all familiar with the saying: adapt, migrate, mutate or die. Charles Darwin put forth his theory of evolution in 1859 and its relevance to businesses has long been applied by academics and business experts. But, in today’s fast-paced environment, while still applicable it suggests a pace that is much slower than our reality.
Adapting, migrating and mutating takes time–sometimes a long time.
While it may not be relevant from a biological standpoint, businesses today might be well advised to follow a different piece of advice: (more…)
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