How Competitive Forces Shape Strategy, Michael E. PorterHarvard Business Review, March-April, 1979

SUBMITTED TO DR. SHIV K. GUPTA BY YAHYA ABDULQADERIN PARTIAL FULFILLMENT OF COURSE REQUIREMENT FOR MBA 630 (01)MARKETING MANAGEMENT AND PLANNING

Summary

Factors that strength a company’s position in its industry and make it able to compete rivals.

The five basic forces that the state of competition depends on. The role of suppliers and buyers and the conditions that

contributed in making them powerful. The strategist role, formulation of strategy, and multifaceted

rivalry.

Conceptual Thoughts

Five basic forces that state of competition depends on: 1. Threat of new entrants. 2. Bargaining power of suppliers. 3. Bargaining power of customers. 4. Threat of substitute products. 5. The industry jockeying for position among competitors. Two more conditions: 1. The change of the previous conditions. 2. Strategic decisions involving a large segment of an industry.

Conceptual Thoughts

Suppliers and buyers have a great role in increasing or decreasing the profits of an industry.

The freedom to choose sellers and buyers is among important decisions that any company should look at it seriously.

Strategist has successfully identify the company’s strengths and weaknesses.

The essence of growth for any company is to put itself in a strong position that protect it from competitors’ risk.

Critical Personal Analysis

Very useful and full in details about the competition. Clear examples for each condition of five basic forces that state

of competition depends on. Strategist should take into consideration the factors that

strengthen the company’s position against competitors.