Michael Eugene Porter - The Five Forces Blog #1 Week 2 (ENT 660)
Updated: Jan 7
A new course has begun. For Fall 2020 ENT660-50: Entrepreneurial Strat-Part 1, I am reading, "Understanding Michael Porter" by J. Margretta. Why is Michael Porter important and famous? Michael Porter is best known for his five forces used for economics. "...he is the most cited scholar in economics and business." (Magretta, 2012) What are the 5 forces used for and what are they? The five forces are a framework for analyzing a company's competitiveness. A company's competitive rivals, new market entrants, suppliers, customers, and substitute products influences profit. The Five Forces analysis, guide business strategies to increase competitiveness.
The five forces again are:
Threat of substitution
Threat of new entry
These charts put it simply for me. I hope that they help you too.
Alexa Blog. 2020. Industry Analysis Using Porter's Five Forces: Guide + Example - Alexa Blog. [online] Available at: <https://blog.alexa.com/industry-analysis/> [Accessed 17 October 2020].
B2U - Business-to-you.com. 2020. Porter's Five Forces EXPLAINED With EXAMPLES | B2U. [online] Available at: <https://www.business-to-you.com/porters-five-forces/> [Accessed 17 October 2020].
CGMA. 2020. Porter’S Five Forces Of Competitive Position Analysis. [online] Available at: <https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html> [Accessed 17 October 2020].
Magretta, J., 2012. Understanding Michael Porter. Boston, MA: Harvard Business Review Press.