Competitive Strategy : Techniques For Analyzing Industries And Competitors

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In 1980, Michael E. Porter, of Harvard University, wrote a book called Competitive Strategy: Techniques for Analyzing Industries and Competitors. The purpose of the book was to discuss his “Five Forces Model of Competition” and expose students and businesses alike to his ideas on policy and strategy (Porter, 1980). The external analysis of industry, competition, and the general external environment is based on Porter’s Five Forces Model of Competition. Industry/Competition Current Rivalry. Industry competitors are considered rivals in today’s staffing industry. According to the United States Census Bureau (2007), it is estimated that there are about 17,000 staffing companies in the United States; which means 16,999 companies are competing against one another. Consequently, there are opportunities and threats when it comes to rivalry within a given industry. The staffing industry is struggling with “labor shortages, competition for applicants, and workforce diversity” (Ployhart, 2006). The industry is also becoming increasingly competitive within domestic and international markets (Enright & Pemberton, 2016). Companies that are joining the industry are ultimately threatening the profits of existing companies. Therefore, there is an opportunity to see what makes the competition successful. New and existing companies may have an innovative service offering that most companies do not offer yet; which is an opportunity to set the company apart from the competition. Companies

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