Porter's five forces and the choice of position
Five forces shape profitability, and rivals are only one of them. Strategy begins when you choose what you will NOT be.
How much can be earned in an industry at all is set by five structural forces, and when all five are strong, working well saves nobody.
- Threat of new entrantsHow easy it is to get in.
- Supplier bargaining powerWhether they can push the price up.
- Buyer bargaining powerWhether they can force it down.
- Threat of substitutesWhether the same need can be met a completely different way.
- Rivalry among existing firmsHow fiercely the fight is fought.
- The situation
A club does twenty activities badly and thinks it is short of people.
- What the model says
What is short is a decision. Nobody ever said what this club is different at, compared with the other four in the faculty, so every new idea looks equally worth doing.
- What you do
Write one sentence on what you are different at, without the words 'community', 'opportunities' and 'growth', and name two activities you will therefore stop.
What it claims
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Who created it
Why this is your problem
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Why gslk uses it
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Source
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The primary source is in copyright. This page retells it in our own words and cites it rather than reproducing it.
These works are related to the one you just read — and not by accident:
shared competencies: Strategy, Judgement
shared competencies: Strategy, Judgement
shared competencies: Strategy, Judgement
shared competencies: Strategy, Judgement
Of the ten gslk competency domains, this work grounds:
The same work written for a member: what to do with it in the club.
Links to publishers and libraries. There are no links to unauthorised copies here, and there will not be.
- The Institute for Strategy and Competitiveness — an overview of Porter's work
- Michael Porter's profile at Harvard Business School
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