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Compare And Contrast Michael Porter's Five Forces And Other Business Strategy

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Comparison Michael Porter’s Five Forces and Other Business Strategy Approach We have assembled some important research discoveries on this well known level headed discussion in strategic management. Basically both schools of thought bolster off the same economic model. Their distinction is the thing that they believe is occurring out there in this present reality. The advocates of competitive strategy, to a great extent doing a reversal to Porter, take the view that opposition is the fundamental issue that senior business managers should be tending to. That is the thing that they see as the fundamental challenge confronting organizations. Blue Ocean vs Five Forces Strategy A close look at this in practice provided some valuable results. …show more content…

You might start with SWOT to paint the picture of your company's current position in the marketplace and then look ahead to future strategic options. Then, Five Forces provides a tool to assess viability of particular product, service or industry expansion. You can weigh diversification into a product category using Five Forces, for instance. Competition and Time-Orientation SWOT is about your business and its position, and Five Forces is a tool you use to analyze competitors and how they could inhibit you. Generally, the best opportunities for a business lie in situations where a company's strengths relative to competition align with its opportunities and less inhibiting competitive factors. Time-orientation is also slightly different with SWOT and Five Forces. With SWOT, you assess your current position and future endeavors. Five Forces is centered mostly on future …show more content…

The Porter’s five forces model considers industry as a unit whereas RBV narrow down to a firm or an individual resource as a unit of analysis. However, looking at another a different angle, both five forces and RBV models are prescriptive in nature and assume that managers are rational. In the Five forces model, manager has to make the right assessment before choosing the appropriate strategy to manage the five competitive forces in order to improve the position of the organization, thus earning above average profits. However, in RBV, the managers have the entire tasks of identifying, developing and deploying key resources to earn and sustain superior profits. It is not only about the ability of the managers to make the correct decisions, but also about their ability to work creatively with the raw material presented by their firm and their environment. It also involve the ability of the manager to respond appropriately when their firm’s organizational structure finds good strategies and to create decision structures and procedures that allow a firm to respond to its environment

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