The Five Competitive Forces: A Strategy Simulation Game

I am going the review the Article "The Five Competitive Forces That Shape Strategy" written by Micheal E. Porter. This article was published in Harvard business Review in year 2008.

COMPETITIVE POSITION IS WHAT GIVES ORGANISATIONS COMPETITIVE ADVANTAGE. HOW DOES THE UNDERSTANDING OF PORTERS COMPETITIVE FORCES HELP ORGANISATIONS GAIN FAVOURABLE COMPETITIVE POSITIONS?

In 1980 and later in 1985 Michael Porter wrote two books. First one is “Competitive Strategy” and the second one is “Competitive Advantage” which are emphasized in explaining strategies which guides companies through analyzing themselves in their industries and by that analysis he guides them to choose the best strategy in order to be successful and achieve sustain competitive advantage their existing market. This paper focus on two of Porter's strategies that are “Five Force Analysis” and “Generic Strategies”. These strategies are still using by some of the company, but they are started to be replaced by new approaches. They became outdated for today’s highly competitive marketplace because they only focus on competing in existing market. In 2005, W. Chan Kim and

This additional elasticity in Apple’s business strategy shows its aspiration to conquer Dell, HP and Microsoft, done with a exceptional and groundbreaking mixture of digital media and personal computer creations.

Each organization has its own strategy in order to achieve company’s aim such as grow in the market, especially by considering there would be many more competitors around. Due to that, the company require to have very good tactic in order to gain customer’s trust so that they can lock in the customers. By having good strategy, the company will have its own uniqueness which makes it different from other company. As the result, it could support the company to succeed in competitive advantage, since understand all the threats that might prevent to accomplish the objectives through analyse on the current business atmosphere and industry circumstances. In this case, the customers would satisfy with the company services because it is

When Seymour and White visited the Consumer Electronics Show (CES) to talk with potential customers, they pointedly passed on an opportunity to provide value to an established market. Nintendo representatives at CES stated that a small, cheap hard drive costing $50 would have a potential market in the millions. After additional deliberation, the Kittyhawk team decided to pass on this opportunity in search of more lucrative markets. This mistake is somewhat understandable, because the $50 target cost was deemed too high of a technological challenge.

Our company Orange experienced a very successful campaign and grew more profitable over the six quarters throughtout the Market Simulation. In terms of market share in comparison to the competition, we placed fourth holding 12 percent market share. We initially targeted the Mercedes market, and later developed products aimed at the Traveler and Workhorse clientele. In terms of profitability, we suffered a loss moving from Quarter 1 to Quarter 2, which is typical of most early-stage companies. However, each quarter thereafter we were able to maintain a profit, ending with $18,270,122 gross profit and $15,232,910 operating profit. Our six computer models are the driving factor behind such success. These models include The

In contemporary society, it is almost impossible to imagine someone who lives without a computer. The advancement of computer technology in all facets of the world substantially grew to the point where everyone needs a computer to carry out their everyday life. Computers have gained significance as they have improved the efficiency and productivity of work done. Computers have not only become a common accessory, but a necessity as well. With the overwhelming demand for computers and their functions, the question ‘what kind of computer should I purchase?’ ripens. In 2006, Apple sought to answer that question. In that year, Apple launched their first “Get A Mac” commercial. The first year of the campaign produced 19 ads. After 4 years the campaign

While working through the marketplace live simulations, we had thought from the beginning the best way to start out our company would be to first create a lower level computer which was a part of the group workhorse. Our workhorse was a very low scale computer, only giving the customer the basic necessities that would be needed. After creating our first product, it did not sell the way we wanted to see we needed to go into a new direction. As the simulation had progress on, we had turned our attention away from the workhorse brand and started to go for the better types of computers such as the traveler and Mercedes type computers. Once we started focusing more on these types of computers our profit was increasingly coming much larger than when we were only looking at the workhorse.

The competitive advantages realized by Apple have catapulted the organization to the great heights it enjoys presently. The hardware design forms one of the major competitive advantages. Indeed, the products of Apple are elegant and well designed and every vendor concurs that the products have no equal in the market in terms of design. The laptops, desktops and phones produced by Apple are always designed right for the first time and this puts them ahead of the competitors in the market. Another area where Apple has much competitive advantage is marketing of products (Schulze, 2011).

Marketplace live business Simulations is an educating game focusing on real life business and marketing environments. The game allows students to implement their own business ideas and strategies allowing for them to experience consequences or positive outcomes that follow their decisions. This manual outlines the business ideas and changes that Prestige PC’s made while selling their products globally to compete with their major competitors.

There are many definitions of leadership. The Collins English dictionary defines leadership as “the leader(s) of a party or group.” Yet true leadership is much more than that. A leader can be the chief executive officer of an organization, or a first year employee who leads his or her team to success behind the scenes. A leader might lead through official authority and power, yet just as often great leaders lead through inspiration, persuasion and personal connections. Teaching others to be a leader is a daunting task

In the article, “The Five Competitive Forces that Shape Strategy,” Michael Porter argues that the five forces are an important element for managers and investors in the business industry. Porter stated that it is important to “understand the competitive forces, and their underlying causes” which many companies will use to determine if they will gain profit or not (Porter 80). Companies determine their profitability of the industry through the level of the force that they face. For instance, when the forces are favorable, most companies will be profitable. Porter gives a detail description of the five forces and explains the importance of each force. The five forces are the threats of new entrants, the power of the buyers, the power of the suppliers, the threats of substitute for products or services, and the rivalry among existing competitors. Porter believes that “a company strategist who understands the competition extends well beyond existing rivals will detect wider competitive threats and be better equipped to address them” (Porter 93). In other words, when strategists understand the different forces it will benefit them to make better decisions and to be ready to face the different challenges between competitors. In the article, Porter’s main goal is to present the importance of the five forces to the audience.

A player using strategy x against an opponent using strategy y will have the payoff xTAy

The threat of new entrants refers to the threat posed by new competitors within an industry. If it is easy for new firms to enter the industry barriers to entry are low and the threat of new entrants is high. A profitable industry attracts more competitors. Economies of scale, learning curve effects and other macro factors impact the nature of an industry 's