Michael Porter

4. KEY TOOLS OF STRATEGIC COSTS MANAGEMENT The ability of strategic cost management to achieve the desired objectives depends on the realization of certain activities. In this respect, J.K. Shank emphasizes that there are 3 key tools of strategic cost management, referring to Strategic Management literature of Strategic Management Accounting. These are as following (Shank and Govindarajan 1993, 13); • Value Chain Analysis, • Strategic Positioning Analysis, • Cost Driver Analysis, 4.1. Value

recommendations are suggested for consideration. This report also shares other academic and non-academic theoretical frameworks and theories that helps establish and formulate informed strategic decisions. Figure 1. Five Force Framework Model Source: Michael E. Porter, This framework was first published in Harvard Business Review in 1979 1.2 Netflix Background Netflix, Inc. is an American provider of on demand Internet streaming media available to North and South America, the Caribbean, United Kingdom

Porter (1980) created a model which considers five important forces (Porters five forces) which aims to establish a profitable and sustainable position against the forces that determine industry competition, therefore position themselves within it and differentiating themselves where necessary

Mr. Porter makes the essential point that competitive advantages and the differences they create in firm performance are often strongly related to the resources firms hold and how they are managed. Resources are the foundation for strategy, and unique bundles

Porter ,1990), nations are most likely to succeed in industries where the national 'diamond' is the most favorable. The diamond has four interrelated components: (1) factor conditions, (2) demand conditions, (3) related and supporting industries, and (4) firm strategy, structure, and rivalry, and two exogenous parameters (1) government and (2) chance, as shown below. 　　　 Figure 5. Porter Diamond (Traill, Bruce; Eamonn Pitts,1998) However

firm create that competitive advantage? According to Michael Porter, to achieve a competitive advantage, a firm must perform one or more value creating activities in a way that creates more overall value than competitors (1985). The purpose of this paper is to examine how the value chain creates competitive advantages. It will review the concepts of the value chain, the inter-relationship of these

connected to the different stakeholders, such as suppliers, consumers or even marketing channels. Michael Porter defined the value chain as a combination of all support and primary activities that take part into the creation of the product or service. (See appendix to have a deeper description of all the activities). Creating value comes with the discovery of an opportunity and the exploitation of it. Michael Porter “created value chain analysis as a means to organize and understand the customer-value-creating

Executive Summary What are the secrets of India’s success in information technology? By using Porter’s Diamond Model, this article tries to answer that question. Based on the analysis, it seems the only determinant in the Porter’s Diamond that creates India’s success is Factor Condition (i.e. the Indian intellectual capital and “Indian connection” in Silicon Valley). The supporting determinant outside the diamond is the outsourcing trend in current global competition, which can be considered as the

Porters 5 forces “Understanding the Tool Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation. These are: 1. Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their product or service, their strength and control over you, the cost of switching from one to another, and so on. The fewer the supplier choices you have, and

stocks of nonhuman factors that are available for use in producing goods and services. Resources may be tangible, as in the case of land, labor, and capital, or they may be tangible, as in the case intellectual property, reputation, and goodwill” (porter). In other words asset can be material such as money, property, labor which might be called tangible. They can also be intellectual (educate people, knowledge person, high skill, smart person), notoriety, and goodwill. In fact, in order to create