Porter’s Five Forces model is a powerful management tool for analyzing the current industry profitability and attractiveness by using the outside-in perspective. Within the last decades, the model has attracted some criticism because of the developing Internet economy. Due to an increasing significance of Digitalization, Globalization and Deregulation, the industry structure of the ‘Old Economy’ changed fundamentally. The ‘New Economy’ is not comparable with the ‘Old Economy’, which is the basis of the Five Forces model. Moreover the last decades have shown that Information Technology became more and more important. Nowadays Technology is one of the most important drivers for change and not only important for the implementation of change. Today new technology is one of the most important drivers for change. Furthermore Porter also couldn’t take the growing significance of ‘Government Deregulation’ into account. In 1979 the government was able to regulate the market by defining and enforcing “property rights and the rules of competition”. In the past 20 years, governmental influence on industries decreased steadily. Therefore the most of the concerned industries (airlines, communication, or banking industry) were able and constrained to search for alternatives and to structure their business in a new way.
This document discusses various aspects of positioning services in the market. It defines positioning as the place a product occupies in consumers' minds relative to competing products. It then provides examples of different types of positioning, including by specific attributes, price/quality, use, product class, user, and competitor. The document emphasizes that an effective positioning strategy must establish a simple, consistent message that sets a firm or product apart. It also discusses using positioning maps to analyze competitive strategies.
Cellular layout helps us in increasing the productivity with minimizing the cost.
It is the latest technique to minimize the cost and increase the profits without affecting the organization. The concept of LEAN management.
Services Marketing Case Studies|Case Studycasestudylover
Services Marketing, Consumer Behaviour, Marketing Research, Brand Marketing Communication Strategies Case Studies , Marketing, IBSCDC, IBSCDC, Case Development Centre, Case Studies in Management, Finance, Marketing, Leadership, Entrepreneurship, Strategy, Industry Analysis, Economics, Government & Business, International Trade, Technology, Monetary Policy, HRM, Human Resource Management, Investment & Banking, Competitive Strategies, Core Competency, Corporate Strategies, Innovation Management, Mergers & Acquisitions, Succession Planning, Teaching Notes, Structured Assignments, Case Study, Multimedia Case Studies, Management Cases, Leading Business Schools, Universities, Consulting Houses, ecch, ECCH, IBS-Case Development Centre is set-up in 2004 to promote quality research in business management. Icfai Business School Case Development Centre has developed over 1100 world-class case studies.
Positioning involves placing a brand in customers' minds in a way that occupies a distinctive place in the target market. It is defined as what is done to the mind of the customer rather than what is done to the product. Effective positioning differentiates a brand in a way that delivers a valued, distinctive, superior, preemptive, and affordable benefit to buyers. Principles of positioning include being first to market or creating a new category. Positioning errors can occur if a brand is under positioned, over positioned, confused, or doubtful in customers' minds. Strategies include positioning by attributes, benefits, use, competitors, product category, quality, price, or target market. Perceptual mapping involves understanding customers' ideal product
Product layouts are used for repetitive assembly of standardized products. The workstations are arranged in a straight line so items can pass smoothly from one station to the next. This allows for mass production with low cycle times but lacks flexibility.
Process layouts group similar processes together, like all sewing stations in one area. This requires more space but allows for production of various items and easier changes to processes. Cycle times are longer but it allows for process specialization and more efficient use of equipment.
The type of layout chosen impacts operations through factors like costs, cycle times, productivity levels, flexibility, and specialization of labor or equipment.
Creating Customer Value, Satisfaction and Loyalty / Marketing Management BY ...Choudhry Asad
The document discusses key concepts related to customer value, satisfaction, and loyalty. It covers traditional versus modern customer-oriented organizations, determining customer perceived value and its drivers, measuring customer satisfaction, defining loyalty, and frameworks for customer relationship management. Steps for customer value analysis, retention, and managing the customer base are also outlined.
This document outlines key concepts from a session on operations strategy in a global environment. It discusses developing mission and strategies, achieving competitive advantage through operations, strategic operations management decisions, and global operations strategy options including international, multidomestic, global, and transnational strategies. Critical success factors and integrating operations strategy with other functions are also covered.
How to balance demand & capacity. What are the building blocks or Demand & Capacity? Productive Capacity in a service context. Ways to manage capacity. Demand patterns vary by segment. Ways to manage demand. Use of marketing mix elements. Waiting lines & Queuing systems. Customers Perceptions about the waiting line.
Reference: Lovelock
This document discusses various aspects of positioning services in the market. It defines positioning as the place a product occupies in consumers' minds relative to competing products. It then provides examples of different types of positioning, including by specific attributes, price/quality, use, product class, user, and competitor. The document emphasizes that an effective positioning strategy must establish a simple, consistent message that sets a firm or product apart. It also discusses using positioning maps to analyze competitive strategies.
Cellular layout helps us in increasing the productivity with minimizing the cost.
It is the latest technique to minimize the cost and increase the profits without affecting the organization. The concept of LEAN management.
Services Marketing Case Studies|Case Studycasestudylover
Services Marketing, Consumer Behaviour, Marketing Research, Brand Marketing Communication Strategies Case Studies , Marketing, IBSCDC, IBSCDC, Case Development Centre, Case Studies in Management, Finance, Marketing, Leadership, Entrepreneurship, Strategy, Industry Analysis, Economics, Government & Business, International Trade, Technology, Monetary Policy, HRM, Human Resource Management, Investment & Banking, Competitive Strategies, Core Competency, Corporate Strategies, Innovation Management, Mergers & Acquisitions, Succession Planning, Teaching Notes, Structured Assignments, Case Study, Multimedia Case Studies, Management Cases, Leading Business Schools, Universities, Consulting Houses, ecch, ECCH, IBS-Case Development Centre is set-up in 2004 to promote quality research in business management. Icfai Business School Case Development Centre has developed over 1100 world-class case studies.
Positioning involves placing a brand in customers' minds in a way that occupies a distinctive place in the target market. It is defined as what is done to the mind of the customer rather than what is done to the product. Effective positioning differentiates a brand in a way that delivers a valued, distinctive, superior, preemptive, and affordable benefit to buyers. Principles of positioning include being first to market or creating a new category. Positioning errors can occur if a brand is under positioned, over positioned, confused, or doubtful in customers' minds. Strategies include positioning by attributes, benefits, use, competitors, product category, quality, price, or target market. Perceptual mapping involves understanding customers' ideal product
Product layouts are used for repetitive assembly of standardized products. The workstations are arranged in a straight line so items can pass smoothly from one station to the next. This allows for mass production with low cycle times but lacks flexibility.
Process layouts group similar processes together, like all sewing stations in one area. This requires more space but allows for production of various items and easier changes to processes. Cycle times are longer but it allows for process specialization and more efficient use of equipment.
The type of layout chosen impacts operations through factors like costs, cycle times, productivity levels, flexibility, and specialization of labor or equipment.
Creating Customer Value, Satisfaction and Loyalty / Marketing Management BY ...Choudhry Asad
The document discusses key concepts related to customer value, satisfaction, and loyalty. It covers traditional versus modern customer-oriented organizations, determining customer perceived value and its drivers, measuring customer satisfaction, defining loyalty, and frameworks for customer relationship management. Steps for customer value analysis, retention, and managing the customer base are also outlined.
This document outlines key concepts from a session on operations strategy in a global environment. It discusses developing mission and strategies, achieving competitive advantage through operations, strategic operations management decisions, and global operations strategy options including international, multidomestic, global, and transnational strategies. Critical success factors and integrating operations strategy with other functions are also covered.
How to balance demand & capacity. What are the building blocks or Demand & Capacity? Productive Capacity in a service context. Ways to manage capacity. Demand patterns vary by segment. Ways to manage demand. Use of marketing mix elements. Waiting lines & Queuing systems. Customers Perceptions about the waiting line.
Reference: Lovelock
The document discusses various strategies for scheduling operations in service industries. It describes three types of service operations: quasi-manufacturing, customer-as-participant, and customer-as-product. For quasi-manufacturing operations, the primary concern is having enough resources to meet hourly customer demand. Customer-as-participant services require accommodating customers and cooperation between operations and marketing. Customer-as-product services are performed directly on customers, often using a first-in, first-out approach. The document also outlines strategies for scheduling service operations, such as chasing demand, earliest deadline first, and rate-monotonic scheduling.
The Engel-Kollat-Blackwell model views consumer behavior as a 4-step decision making process involving information processing, a central control unit, decision processes, and external influences. It was originally developed in 1968 to organize the growing body of knowledge around consumer decisions. The model accounts for differences in involvement between high-risk and low-risk purchases. It provides a framework for understanding how consumers actively seek, process, and evaluate information to make purchase decisions over time.
Distinctive capabilities strategic human resource managementmanumelwin
A distinctive capability or competence can be described as an important feature that in Quinn’s (1980) phrase ‘confers superiority on the organization’.
Brief information about Capacity and Demand...and what all measures are to be taken to balance that are also discussed.
In this we will discuss about:-
1. Capacity
2. optimum and maximum use of capacity
3. the UPs and downs
4. from excess demand to excess capacity
5. measuring and managing capacity
6. stretching and shrinking level of capacity
7. chasing demand
8. creating flexible capacity
9. demand
10. understanding demand pattern
11. analyzing demand by market segment
12. multiple influences on demand
13. strategies for managing demand
Basic Models On Human Resource DevelopmentKrishnan D G
Maslow believed that human motivation is hierarchical, with self-actualization at the top of the hierarchy. Skinner thought that behavior is shaped by consequences in the environment - reinforcement increases the likelihood of a behavior repeating. Erikson's psychosocial theory describes eight stages of development from infancy to old age, with a psycho-social task to be resolved at each stage to promote healthy development.
This document discusses facility layout, including the meaning and objectives of good layout. It describes factors that influence layout such as material handling costs, safety, and efficiency. The principles of an ideal layout are described as well as the importance of layout. Different types of layouts are covered including product, process, cellular manufacturing and combined layouts. Revision of existing layouts is discussed. The document concludes with a case study on a McDonald's kitchen layout.
Services marketing refers to the marketing of both business-to-consumer and business-to-business services. It focuses on the distinctive characteristics of services and how they affect customer behavior and marketing strategy. Services are activities that are often time-based and bring about desired results for customers without transferring ownership. In services marketing, the traditional 4Ps are adapted and expanded to the 7Ps, which include people, physical evidence, and processes involved in service delivery. Services marketing helps organizations design customer-focused processes to create quality experiences from the customer's perspective.
Southwest Airlines has consistently been profitable for 37 years through a low-cost business model. It focuses on short, frequent flights without hubs using only Boeing 737 aircraft. Southwest saves on fuel costs through hedging and efficient operations like fast turnarounds. It aims to pass these savings to customers through low fares while maintaining a fun, customer-focused culture. Though competitors try to copy its model, Southwest prides itself on excellent customer service.
This document discusses service focus and encounters. It defines four types of service focuses: 1) service focused, 2) market focused, 3) service and market focused, and 4) unfocused. It also discusses how unfocused service operations can achieve benefits of focus through business focus and operational focus. Service encounters are defined as moments of truth where customers interact with the service. Characteristics, types, and variables complicating encounters are described. Four elements of service encounters - customer, service provider, delivery system, and physical evidence - are outlined. Scripts are discussed as outlines for expected customer experiences. Functions and problems of scripting are also summarized.
Creating customer value is the driving force behind a company's goals, and identifying the appropriate customer value measure is not an easy task. Adding services, relationships, and experiences differentiates company offerings in the market. No real customer value exists without a close relationship with customers to understand their needs and provide sophisticated customer interactions.
Reference Group and Family Influence on Consumer BehaviorRamishSheikh1
This presentation is based on the important topics of the Two Chapters 1.Reference Group 2. Family Influence On Consumer Behavior.
Reference Group: Groups that serve as source of comparison, influence and norms for people’s opinion’s, values and behaviors.
Word Of Mouth: Communication where satisfied customer’s tell
other people how much they like a business,
product or service.
Source Credibility:A source’s persuasive impact, stemming from its perceived expertise, trustworthiness, and believability.
Reference Group Influence:
* Normative Influence
*Comparative Influence
Consumption Related Reference Group:
There are several Types which are as follow:
*Friendship Group
*Shopping Group
*Virtual Community
*Advocacy Group
Factors Affecting reference Group Influence:
Conformity:
To influence its members, a reference group must:
Inform members that the brand or product exists.
Provide opportunity to compare thinking with the attitudes/behavior of the group.
Influence individual to adopt attitudes and behavior that are consistent with the group’s norms.
Legitimize the member’s decision to use the same products as other members.
The document outlines Parasuraman, Berry, and Zeithaml's Gaps Model of Service Quality which identifies gaps between customer expectations and perceptions that can occur within an organization, and it discusses their SERVQUAL framework for measuring service quality across five dimensions: tangibles, reliability, responsiveness, assurance, and empathy. The Gaps Model is used to show how four internal gaps within a company relating to understanding customer expectations, service design, service delivery, and communications can contribute to an overall gap between customer expectations and perceptions of service quality.
1) The document discusses consumer learning and how marketers want to teach consumers about their products and services. Consumer learning is the process by which individuals acquire knowledge and experience about purchase and consumption that they apply to future behavior.
2) There are two types of learning - intentional learning that comes from careful search for information, and incidental learning that is acquired accidentally without much effort.
3) The document then discusses behavioral learning theories like classical and instrumental conditioning, and cognitive learning theories that involve mental processing. It provides an example of how Horlicks India has achieved over half the market share by utilizing consumer learning processes.
The document discusses various aspects of customer relationship management (CRM) and service quality. It describes CRM as a process of building and maintaining customer relationships through strategies like data collection and analysis, sales force automation, and customer retention. The document also discusses topics like service recovery strategies, building customer loyalty through rewards programs, and the importance of physical evidence and managing the service environment known as the "servicescape".
The document discusses the history and development of the US airline industry from the 1970s onwards. It then provides details about Southwest Airlines, including its founding in 1971, business strategies focusing on short flights with Boeing 737 aircraft and low fares, and human resource management practices emphasizing positive customer service and employee satisfaction. Porter's five forces model is also applied to analyze the competitive environment of Southwest Airlines.
Southwest Airlines has been successful due to its principal values, creation of a unique culture, and business model focused on operational simplicity and low costs. Some strengths that have contributed to its success include having a friendly approach with customers, innovative retention strategies, and a strong work culture. However, the airline is dependent on a single airplane producer and faces threats from increasing costs and competition from other carriers offering similar low-cost services. Overall, Southwest has created a memorable brand focused on customer service through strategies like empowering employees and building relationships.
This document discusses different types of production systems. It defines production as manufacturing, mining or growing goods for trade, and a production system as consisting of inputs, conversion processes, and outputs. The main types of production systems are described as job production (one-off custom jobs), batch production (similar goods in batches), mass production (large volumes of standardized goods), and process production (continuous extraction of goods like oil). The advantages and disadvantages of each system are provided.
Perception involves selecting, organizing, and interpreting sensory information. Sensation is the immediate response to stimuli, while perception adds interpretation. Selective perception means we notice some things more than others based on internal factors like motivation and external ones like size and motion. Gestalt principles of perceptual organization include figure/ground, grouping, closure, and good continuation. Perceptual interpretation involves applying stereotypes, judging appearances, using descriptive terms, forming first impressions, and halo effects. Positioning creates an image for a product or service in consumers' minds through communications and benefits rather than attributes. Repositioning may be needed due to competitors, lifestyle changes, or target segments.
Rotary kilns are available in both direct-fired and indirect-fired configurations. Each type offers its own unique advantages and disadvantages. This presentation gives an overview of the two types and the advantages and disadvantages each has to offer.
Importance of understanding competition in Marketing PlanningMaxwell Ranasinghe
This document outlines six steps for analyzing competition: 1) Define the industry structure and characteristics, 2) Identify strategic groups, 3) Identify and describe key competitors, 4) Evaluate key competitors, 5) Anticipate actions by competitors, and 6) Identify new competitors. It then provides more details on each step, including defining different types of competition, analyzing industry structure and competitive forces, using strategic group analysis to identify key competitors, and evaluating competitors' capabilities, market coverage, and strategies. The overall process allows for a thorough understanding of the competitive landscape.
The document discusses various strategies for scheduling operations in service industries. It describes three types of service operations: quasi-manufacturing, customer-as-participant, and customer-as-product. For quasi-manufacturing operations, the primary concern is having enough resources to meet hourly customer demand. Customer-as-participant services require accommodating customers and cooperation between operations and marketing. Customer-as-product services are performed directly on customers, often using a first-in, first-out approach. The document also outlines strategies for scheduling service operations, such as chasing demand, earliest deadline first, and rate-monotonic scheduling.
The Engel-Kollat-Blackwell model views consumer behavior as a 4-step decision making process involving information processing, a central control unit, decision processes, and external influences. It was originally developed in 1968 to organize the growing body of knowledge around consumer decisions. The model accounts for differences in involvement between high-risk and low-risk purchases. It provides a framework for understanding how consumers actively seek, process, and evaluate information to make purchase decisions over time.
Distinctive capabilities strategic human resource managementmanumelwin
A distinctive capability or competence can be described as an important feature that in Quinn’s (1980) phrase ‘confers superiority on the organization’.
Brief information about Capacity and Demand...and what all measures are to be taken to balance that are also discussed.
In this we will discuss about:-
1. Capacity
2. optimum and maximum use of capacity
3. the UPs and downs
4. from excess demand to excess capacity
5. measuring and managing capacity
6. stretching and shrinking level of capacity
7. chasing demand
8. creating flexible capacity
9. demand
10. understanding demand pattern
11. analyzing demand by market segment
12. multiple influences on demand
13. strategies for managing demand
Basic Models On Human Resource DevelopmentKrishnan D G
Maslow believed that human motivation is hierarchical, with self-actualization at the top of the hierarchy. Skinner thought that behavior is shaped by consequences in the environment - reinforcement increases the likelihood of a behavior repeating. Erikson's psychosocial theory describes eight stages of development from infancy to old age, with a psycho-social task to be resolved at each stage to promote healthy development.
This document discusses facility layout, including the meaning and objectives of good layout. It describes factors that influence layout such as material handling costs, safety, and efficiency. The principles of an ideal layout are described as well as the importance of layout. Different types of layouts are covered including product, process, cellular manufacturing and combined layouts. Revision of existing layouts is discussed. The document concludes with a case study on a McDonald's kitchen layout.
Services marketing refers to the marketing of both business-to-consumer and business-to-business services. It focuses on the distinctive characteristics of services and how they affect customer behavior and marketing strategy. Services are activities that are often time-based and bring about desired results for customers without transferring ownership. In services marketing, the traditional 4Ps are adapted and expanded to the 7Ps, which include people, physical evidence, and processes involved in service delivery. Services marketing helps organizations design customer-focused processes to create quality experiences from the customer's perspective.
Southwest Airlines has consistently been profitable for 37 years through a low-cost business model. It focuses on short, frequent flights without hubs using only Boeing 737 aircraft. Southwest saves on fuel costs through hedging and efficient operations like fast turnarounds. It aims to pass these savings to customers through low fares while maintaining a fun, customer-focused culture. Though competitors try to copy its model, Southwest prides itself on excellent customer service.
This document discusses service focus and encounters. It defines four types of service focuses: 1) service focused, 2) market focused, 3) service and market focused, and 4) unfocused. It also discusses how unfocused service operations can achieve benefits of focus through business focus and operational focus. Service encounters are defined as moments of truth where customers interact with the service. Characteristics, types, and variables complicating encounters are described. Four elements of service encounters - customer, service provider, delivery system, and physical evidence - are outlined. Scripts are discussed as outlines for expected customer experiences. Functions and problems of scripting are also summarized.
Creating customer value is the driving force behind a company's goals, and identifying the appropriate customer value measure is not an easy task. Adding services, relationships, and experiences differentiates company offerings in the market. No real customer value exists without a close relationship with customers to understand their needs and provide sophisticated customer interactions.
Reference Group and Family Influence on Consumer BehaviorRamishSheikh1
This presentation is based on the important topics of the Two Chapters 1.Reference Group 2. Family Influence On Consumer Behavior.
Reference Group: Groups that serve as source of comparison, influence and norms for people’s opinion’s, values and behaviors.
Word Of Mouth: Communication where satisfied customer’s tell
other people how much they like a business,
product or service.
Source Credibility:A source’s persuasive impact, stemming from its perceived expertise, trustworthiness, and believability.
Reference Group Influence:
* Normative Influence
*Comparative Influence
Consumption Related Reference Group:
There are several Types which are as follow:
*Friendship Group
*Shopping Group
*Virtual Community
*Advocacy Group
Factors Affecting reference Group Influence:
Conformity:
To influence its members, a reference group must:
Inform members that the brand or product exists.
Provide opportunity to compare thinking with the attitudes/behavior of the group.
Influence individual to adopt attitudes and behavior that are consistent with the group’s norms.
Legitimize the member’s decision to use the same products as other members.
The document outlines Parasuraman, Berry, and Zeithaml's Gaps Model of Service Quality which identifies gaps between customer expectations and perceptions that can occur within an organization, and it discusses their SERVQUAL framework for measuring service quality across five dimensions: tangibles, reliability, responsiveness, assurance, and empathy. The Gaps Model is used to show how four internal gaps within a company relating to understanding customer expectations, service design, service delivery, and communications can contribute to an overall gap between customer expectations and perceptions of service quality.
1) The document discusses consumer learning and how marketers want to teach consumers about their products and services. Consumer learning is the process by which individuals acquire knowledge and experience about purchase and consumption that they apply to future behavior.
2) There are two types of learning - intentional learning that comes from careful search for information, and incidental learning that is acquired accidentally without much effort.
3) The document then discusses behavioral learning theories like classical and instrumental conditioning, and cognitive learning theories that involve mental processing. It provides an example of how Horlicks India has achieved over half the market share by utilizing consumer learning processes.
The document discusses various aspects of customer relationship management (CRM) and service quality. It describes CRM as a process of building and maintaining customer relationships through strategies like data collection and analysis, sales force automation, and customer retention. The document also discusses topics like service recovery strategies, building customer loyalty through rewards programs, and the importance of physical evidence and managing the service environment known as the "servicescape".
The document discusses the history and development of the US airline industry from the 1970s onwards. It then provides details about Southwest Airlines, including its founding in 1971, business strategies focusing on short flights with Boeing 737 aircraft and low fares, and human resource management practices emphasizing positive customer service and employee satisfaction. Porter's five forces model is also applied to analyze the competitive environment of Southwest Airlines.
Southwest Airlines has been successful due to its principal values, creation of a unique culture, and business model focused on operational simplicity and low costs. Some strengths that have contributed to its success include having a friendly approach with customers, innovative retention strategies, and a strong work culture. However, the airline is dependent on a single airplane producer and faces threats from increasing costs and competition from other carriers offering similar low-cost services. Overall, Southwest has created a memorable brand focused on customer service through strategies like empowering employees and building relationships.
This document discusses different types of production systems. It defines production as manufacturing, mining or growing goods for trade, and a production system as consisting of inputs, conversion processes, and outputs. The main types of production systems are described as job production (one-off custom jobs), batch production (similar goods in batches), mass production (large volumes of standardized goods), and process production (continuous extraction of goods like oil). The advantages and disadvantages of each system are provided.
Perception involves selecting, organizing, and interpreting sensory information. Sensation is the immediate response to stimuli, while perception adds interpretation. Selective perception means we notice some things more than others based on internal factors like motivation and external ones like size and motion. Gestalt principles of perceptual organization include figure/ground, grouping, closure, and good continuation. Perceptual interpretation involves applying stereotypes, judging appearances, using descriptive terms, forming first impressions, and halo effects. Positioning creates an image for a product or service in consumers' minds through communications and benefits rather than attributes. Repositioning may be needed due to competitors, lifestyle changes, or target segments.
Rotary kilns are available in both direct-fired and indirect-fired configurations. Each type offers its own unique advantages and disadvantages. This presentation gives an overview of the two types and the advantages and disadvantages each has to offer.
Importance of understanding competition in Marketing PlanningMaxwell Ranasinghe
This document outlines six steps for analyzing competition: 1) Define the industry structure and characteristics, 2) Identify strategic groups, 3) Identify and describe key competitors, 4) Evaluate key competitors, 5) Anticipate actions by competitors, and 6) Identify new competitors. It then provides more details on each step, including defining different types of competition, analyzing industry structure and competitive forces, using strategic group analysis to identify key competitors, and evaluating competitors' capabilities, market coverage, and strategies. The overall process allows for a thorough understanding of the competitive landscape.
This document provides an overview of the marketing mix, also known as the 4Ps (Product, Price, Place, Promotion). It discusses how an extended marketing mix of 7Ps was developed to also account for services, adding People, Processes, and Physical Evidence. An effective marketing mix matches customer needs, creates competitive advantages, and is well-blended across elements. All elements of the mix are interdependent and must be carefully managed and adjusted together to satisfy customers profitably.
This document provides an overview of the global and Indian automobile industries. It discusses key statistics such as the largest producers and Indian market segments. The top 3 Indian companies are listed as Maruti Suzuki, Hyundai, and Tata Motors. Government policies to promote the industry are outlined. A PESTEL analysis identifies relevant political, economic, social, technological, environmental, and legal factors. Finally, Porter's Five Forces model is applied to analyze competitive rivalry, threat of substitutes, supplier power, buyer power, and threat of new entry.
Porter’s Five Forces Model of Competitive AnalysisHitaksha Puthran
The document provides an overview of Porter's Five Forces analysis framework. It describes the five competitive forces as threats of new entry, power of suppliers, power of buyers, threat of substitutes, and competitive rivalry. For each force, it outlines factors that determine the degree of competitive pressure, and provides examples of how each force applies to industries like fast food, automotive manufacturing, and telecommunications. The purpose of Porter's model is to help companies assess the competitive environment of an industry in order to develop effective business strategies.
Wal Mart and BIG BAZAAR : A comparitive analysisParas Deshpande
This presentation is a business strategy comparison and critical analysis of Wal Mart and Big Bazaar . poters five force analysis and SWOT analysis has been done. Also different formats of retail have been discussed.
the presentation draws heavily from " It happened in India " and " Made In America " .
Porter's 5 forces analysis for car service industryChand Mohammad
The document discusses Porter's Five Forces model and applies it to analyze the used car sales and service industry in India. It finds that the threat of new entrants, threat of substitutes, bargaining power of buyers, and industry rivalry are all high, making the industry only moderately attractive. Specifically, it notes there are many existing and new players in the market, alternatives available to customers, buyers have options and switching costs are low, and competition between rivals is intense. The bargaining power of suppliers is moderate as there are many supplier options.
The document summarizes a book review of The Innovator's Dilemma by Clayton Christensen. It provides background on the author and breaks down key concepts from the book. The book examines why successful companies often fail when confronted with disruptive technological change. It uses case studies like the disk drive industry, Toyota entering the US market, and more to show how disruptive technologies can start from the bottom of the market and eventually overtake established industry leaders. The review also summarizes the book's guidance on how companies can manage disruptive technological change to avoid failure.
Porter's Five Forces & Porter's Value Chain Model msmn671
This document analyzes two companies, Toyota and Perodua, using Porter's Five Forces model and Value Chain model in the automotive industry. It provides an overview of each model and then applies them specifically to Toyota and Perodua. For Toyota, it finds low threat of new entrants due to barriers, weak bargaining power of suppliers, moderately strong bargaining power of buyers, moderate threat of substitutes, and weak rivalry among competitors.
Porter's five forces model and porter's value chain - Sonyell_suhaily
Porter's Five Forces model and Value Chain model are two competitive strategy models created by Michael Porter in 1979. Porter's Five Forces model is used for industry analysis and business strategy development. Porter's Value Chain categorizes a company's primary activities as inbound logistics, operations, outbound logistics, marketing and sales, and service, and secondary activities as procurement, human resources, technology development, and infrastructure. The document then analyzes Sony using these two models, examining the intensity of competitive rivalry in Sony's markets, the threat of new entrants, the threat of substitutes, and the bargaining powers of customers and suppliers in Sony's various business segments.
Porter's Five Forces Model and Porter's Value Chain of NestleSubrienna Othman
This document discusses Porter's Five Forces model and Porter's value chain model using Nestle as an example. It analyzes Nestle using the five forces of competition, threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of customers, and competitive rivalry. It then describes Nestle's value chain including primary activities like inbound logistics, operations, outbound logistics, marketing and sales, and services. It also discusses Nestle's supporting activities such as procurement, human resource management, technological development, and infrastructure.
This document analyzes Porter's five forces for Nestle. It finds that the threat of new entrants is low due to Nestle's strong brand and market leadership. However, the threat of substitute goods is high because Nestle deals in common, daily use products and there is high competition. The bargaining power of suppliers is moderate as Nestle maintains high quality standards, and the bargaining power of customers is also moderate as they have options but Nestle differentiates on quality. Within the industry, competitive rivalry is strong as Nestle's main rivals are Danone and Kraft Foods, but Nestle leads through quality and innovation.
The document discusses Porter's Five Forces model for analyzing industry competition and attractiveness. It describes each of the five competitive forces - threat of new entrants, bargaining power of suppliers and buyers, threat of substitutes, and rivalry among existing competitors. It provides examples of how each force can impact an industry using Coca-Cola's industry as an example. The document also discusses competitive advantages firms can achieve through cost leadership or differentiation strategies and notes some strengths and limitations of Porter's Five Forces model.
The document provides 5 examples of disruptive innovation:
1) Transistor radios disrupted analogue radios by being portable despite lower sound quality.
2) Pocket calculators disrupted desktop calculators through portability despite lower computing power.
3) LCD TVs disrupted CRT TVs initially in mobile applications where lighter weight and battery life were more important than picture quality.
4) Minimills disrupted integrated steel mills by producing cheaper, lower quality steel that captured more segments over time.
5) Mobile phones disrupted landlines by being portable despite lower sound quality and higher costs initially.
How to Become a Thought Leader in Your NicheLeslie Samuel
Are bloggers thought leaders? Here are some tips on how you can become one. Provide great value, put awesome content out there on a regular basis, and help others.
Key Terms
3
Chapter Outline:
3-1
The Organization’s Industry
3-2
The Organization’s
Macroenvironment
3-3
Managing Environmental
Uncertainty
3-4
Environmental Scanning
3-5
Forecasting the
Environment
3-6
Crisis Management
Summary
Review Questions
Endnotes
Managing the
External Environment
boundary-spanning
buffering
crisis
crisis management
culture
Delphi technique
environmental scanning
gross domestic product (GDP)
imitation
industry life cycle
judgmental forecasting
macroenvironment
multiple scenarios
population ecology
self-reference criterion
time series analysis
uncertainty
W
I
L
L
I
S
,
K
A
S
S
A
N
D
R
A
2
1
6
1
T
S
Organizational Theory 3-2
macroenvironment
the general environment
that affects all business
firms in an industry, which
includes political-legal,
economic, social, and
technological forces
industry
a group of competitors
that produces similar
products or services
An organization cannot function effectively unless its managers understand the
forces outside of the organization that influence its performance and survival. There
are two components of the organization’s external environment: the industry—the
collection of competitors that offer similar products or services—and the complex
network of political-legal, economic, social, and technological forces known
as the organization’s macroenvironment. This chapter addresses each of these
components.
3-1 The Organization’s Industry
Each business unit operates among a group of companies that produce competing
products or services known as an industry. Although there are usually some
differences among competitors, each industry has “rules of combat” governing
such issues as product quality, pricing, and distribution. This is especially true in
industries that contain a large number of firms offering standardized products and
services. For example, most service stations in the United States generally offer
regular unleaded, mid-grade, and premium unleaded gasoline at prices that do not
differ substantially from those at nearby stations. If a rival attempts to sell different
grades, it may experience difficulty securing reliable sources of supply and may
also confuse consumers by deviating from the standard.
In a perfect world, each organization would operate in one clearly defined industry.
In the real world, however, many organizations compete in multiple industries, and
it may be difficult to clearly identify the industry boundaries. As such, the concept
of primary and secondary industries may be useful in defining an industry. A
primary industry may be conceptualized as a group of close competitors, whereas
a secondary industry includes less direct competition. The distinction between
primary and secondary industry may be based on objective criteria such as price,
similarity of products, or location, but is ultimately a subjective call.
3-1a Porter’s Five Forces Model
Industry factors have been found to play a majo ...
Porter's Five Forces model is used to analyze industry structure and competition. It examines five forces: threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, and rivalry among existing competitors. The document discusses how the model provides a framework for understanding how these different competitive forces determine the attractiveness and profitability of an industry. It also notes some limitations of applying the model given changes in technologies and industries over time.
The Five Competitive Forces That Shape Strategyby Michael E..docxcherry686017
The Five Competitive Forces That Shape Strategy
by Michael E. Porter
Editor’s Note: In 1979, Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist
and associate professor, Michael E. Porter. It was his first HBR article, and it started a revolution in the strategy field. In
subsequent decades, Porter has brought his signature economic rigor to the study of competitive strategy for corporations,
regions, nations, and, more recently, health care and philanthropy. “Porter’s five forces” have shaped a generation of academic
research and business practice. With prodding and assistance from Harvard Business School Professor Jan Rivkin and
longtime colleague Joan Magretta, Porter here reaffirms, updates, and extends the classic work. He also addresses common
misunderstandings, provides practical guidance for users of the framework, and offers a deeper view of its implications for
strategy today.
In essence, the job of the strategist is to understand and cope with competition. Often, however, managers define competition
too narrowly, as if it occurred only among today’s direct competitors. Yet competition for profits goes beyond established
industry rivals to include four other competitive forces as well: customers, suppliers, potential entrants, and substitute products.
The extended rivalry that results from all five forces defines an industry’s structure and shapes the nature of competitive
interaction within an industry.
As different from one another as industries might appear on the surface, the underlying drivers of profitability are the same. The
global auto industry, for instance, appears to have nothing in common with the worldwide market for art masterpieces or the
heavily regulated health-care delivery industry in Europe. But to understand industry competition and profitability in each of
those three cases, one must analyze the industry’s underlying structure in terms of the five forces. (See the exhibit “The Five
Forces That Shape Industry Competition.”)
The Five Competitive Forces That Shape Strategy - Harvard Business Reviewhttp://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/pr
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If the forces are intense, as they are in such industries as airlines, textiles, and hotels, almost no company earns attractive
returns on investment. If the forces are benign, as they are in industries such as software, soft drinks, and toiletries, many
companies are profitable. Industry structure drives competition and profitability, not whether an industry produces a product or
service, is emerging or mature, high tech or low tech, regulated or unregulated. While a myriad of factors can affect industry
profitability in the short run—including the weather and the business cycle—industry structure, manifested in the competitive
forces, sets industry profitability in the medium and long run. (See the exhibit “Differences in Industry Profitability.”)
Differences in Ind ...
This document discusses factors that can help companies build and sustain competitive advantages. It analyzes leadership, organizational culture, design, and systems. Leadership is important through vision, mission, and governance. A company's values and culture also influence competitive advantage. Bringing the right people together and having the right incentives, structure, and systems in place can collectively help companies develop unique resources and capabilities to gain competitive advantages.
This document discusses factors that can help companies build and sustain competitive advantages. It analyzes leadership, organizational culture, design, and systems. Leadership is important through setting vision, mission, and governance. A company's values and culture also influence competitive advantage. Resources and capabilities are key, and must be valuable, rare, imperfectly imitable, and non-substitutable to provide sustained advantages. The document examines early strategy models and proposes that integrating multiple internal and external factors is needed to identify and sustain sources of competitive advantage.
Of our days, with the opening of borders, the companies compete very aggressive for the flow of their products in a market, where only the companies well organized can afford a good share of the market. The survival of such and such company necessarily passes through the improvement of performance and competitiveness of organizations in general, and small and medium-sized enterprises (SMES) in particular. It is in this perspective that the establishment of the platform of the supply chain management can provide considerable benefits to SMES on their competitors
This document summarizes a research paper that examines the relationship between Porter's generic strategies (low-cost strategy, differentiation strategy, and focus strategy) and firm performance. The researchers conducted a study using questionnaires from 113 firms in Kosovo. They found that pursuing a differentiation strategy provides higher firm performance compared to the other two strategies. A low-cost strategy and focus strategy also had a positive impact on firm performance but to a lesser extent than differentiation. The document provides an overview of Porter's generic strategies and literature discussing how each strategy can impact firm performance if successfully implemented.
This document summarizes a research paper that investigated the relationship between Porter's generic strategies (low-cost strategy, differentiation strategy, and focus strategy) and firm performance. The researchers administered questionnaires to 113 firms in Kosovo and used statistical analysis methods like t-tests, correlation analysis, and regression analysis to test the hypotheses. The results suggest that pursuing a differentiation strategy provides higher firm performance compared to the other two strategies, though low-cost and focus strategies also have a positive impact on performance. The document provides background on Porter's generic strategies and defines each one, discussing how they can potentially impact firm performance based on prior literature.
This document discusses Porter's Five Forces model and its application to analyzing the competitive environment of Nokia's business. It provides an overview of each of the five competitive forces - threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, and competitive rivalry. It then gives a brief history of Nokia, describing its growth into a leading telecommunications equipment manufacturer with a strong brand presence globally and in local Indian markets.
The document discusses various frameworks for conducting a situation analysis for advertising planning, including the 5Cs analysis, SWOT analysis, Porter's 5 forces model, AIDA model, DAGMAR model, and hierarchy of effects model. It explains how to use these models to analyze the company, competitors, customers, collaborators, climate/environment, and to identify strengths, weaknesses, opportunities, threats. It also discusses how to define advertising objectives and target audiences, and the importance of brand personality in positioning strategy. The planning process involves situation analysis, objective setting, targeting, strategy development, implementation, and evaluation.
Tools and Techniques of Strategic ManagementSaumya Singh
This document outlines several tools and techniques for strategic management, including the BCG matrix, GE multifactor portfolio matrix, PESTLE analysis, SWOT analysis, balanced scorecard, VRIO analysis, Mintzberg's 5Ps of strategy, and Porter's five forces model. It provides a brief description of each technique, explaining what factors are considered and how each can be used to analyze an organization's strategy, environment, resources, and competitive position.
This document discusses Porter's Five Forces framework for analyzing industry competition and outlines the key forces: competitive rivalry, bargaining power of suppliers, bargaining power of customers, threat of new entrants, and threat of substitute products. It then provides an example analysis of the athletic footwear and apparel industry using Under Armour, examining how each of the five forces applies. Finally, it introduces PESTEL analysis, outlining the political, economic, social, technological, environmental, and legal factors that shape the business environment.
Porter five forces analysis is a framework developed by Michael Porter to analyze industry competition and develop business strategy. It involves analyzing five competitive forces that shape an industry: the threat of new entrants, the threat of substitute products, the bargaining power of suppliers, the bargaining power of customers, and competitive rivalry within an industry. The framework helps assess an industry's profitability and attractiveness.
InstructionsWrite a paper about the International Monetary Syste.docxvanesaburnand
Instructions
Write a paper about the International Monetary System that addresses each of the following issues:
· Define the International Monetary System and outline the history of the system.
· Describe and provide examples of what is meant by “currency regimes,” and define selected types of regimes and form an argument for selecting fixed exchange rate and arguments for selecting flexible exchange rates.
· Describe and define the creation of the Euro and discuss the benefits as well as the problems associated with the creation of this currency.
Support your paper with at least five (5) resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Your paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
Length: 5-7 pages (not including title and reference pages).
Eiteman, D., Stonehill, M., & Moffett, M. (2016). Multinational business finance. Boston, MA: Prentice-Hall.
Read Chapters 1, 2
This is a major resource, however, I think the assignment can be accomplished without it. I can’t seem to be able to download the book.
The global company's challenge.
Authors:
Dewhurst, Martin1
Harris, Jonathan2
Heywood, Suzanne
Aquila, Kate
Source:
McKinsey Quarterly. 2012, Issue 3, p76-80. 5p.
Document Type:
Article
Subject Terms:
*International business enterprises
*Emerging markets
*Economies of scale
*Contracting out
*Risk management in business
*Business models
*Executives
*Financial leverage
*Globalization
*Research & development
Developing countries
Company/Entity:
International Monetary Fund DUNS Number: 069275188
Aditya Birla Management Corp. Pvt. Ltd.
International Business Machines Corp. DUNS Number: 001368083 Ticker: IBM
NAICS/Industry Codes:
919110 International and other extra-territorial public administration
928120 International Affairs
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
541711 Research and Development in Biotechnology
Abstract:
The article focuses on the management of risks, costs, and strategies by international businesses in emerging markets. It states that the International Monetary Fund reported that the ten fastest-growing economies after 2012 will all be in developing countries. It mentions that technology company International Business Machines expects by 2015 to earn 30 percent of revenues in emerging markets compared to 17 percent in 2009, while Indian multinational conglomerate Aditya Birla Group earns over half of its revenue outside India and has operations in 40 nations. It talks about the benefit of economies of scale in shared services enjoyed by large global companies and comments that the ability to outsource business services and manufacturing is benefiting local busine.
Running Head FIVE PORTER FORCES IN MOTORCYCLE INDUSTRY1FIVE .docxcharisellington63520
Running Head: FIVE PORTER FORCES IN MOTORCYCLE INDUSTRY 1
FIVE PORTER FORCES IN MOTORCYCLE INDUSTRY 6
Five Porter Forces in Motorcycle Industry
Student Name
Institution
Five Porter Forces in Motorcycle industry
The porter’s five forces analysis represents the competitive environment of the motorcycle industry. The five forces provide strategic foresight plan of a motorcycle firm to avoid putting the competitive edge at risk and ensure a long-term profitability of the firm’s product(Kung-Sung, 2005). This vision is very important for the motorcycle production companies as they are able to direct there innovations in terms of choice of investments and strategies. The five forces provides a perspective for analyzing and assessing the competitive strength and position of a business organization or corporation. The Porter’s five forces shape the competition of various products from different companies in the motorcycle market. The following five processes therefore will shape the competition of the available products and goods in the motorcycle market: Competitive rivalry within the industry, the threat of now entrants in the economy, the threat of substitutes, the bargaining power of suppliers, and the bargaining power of the customers (Porter, 2008).
Competitive rivalry within the industry
The competition between different firms producing same kind of product will determine the attractiveness of the industry sector. There are many motorcycle-manufacturing companies today. These companies are fighting to maintain relevance and power in the market. The competition will change based on the sector development, diversity and the existence of barriers to firms to enter. It also provides an analysis of the number of products, competitors, brands, strategies, strengths and weaknesses, and market shares. The factors that will determine how well a firm competes with other firms include the number of competitors in the market, the quality differences of the products and other differences, the switching costs, customer loyalty to a particular firm and the cost of leaving the market(Kung-Sung, 2005).
The Threat of new entrants
The new era of technological advancement has seen many new motorcycle firms entering the motorcycle industry. New firms have begun manufacturing motorcycles of various types, which brings a great threat to the existing companies. The need for more vehicles due to the increasing population has been the motivation behind the increase of new entrants in the market. New entrants will result to competition for the market of their products, which may result to lower profits if the company is beaten in the competition. Therefore, it is the interest of every company to create barriers to prevent its competitors from entering the market. New entrants may be new companies or companies that intent to diversify. The barriers may be industrial (products or single brands) or legal (patent regulations). The arrival of new entrants .
Feedback from peersThanks so much for your response. Very welChereCheek752
Feedback from peers
“Thanks so much for your response. Very well done!
I like the competitive forces model and the broad factor analysis which are models that other students have not really discussed.
All of these models can add value. The important thing if the company has the resources in an ideal world is perhaps use both models or multiple models.
If you know anything about research if you do different types of research focused on the same topic and come up with the same answers then you know you've done a good job!”
__________________________
“Great post, I enjoyed reading about the competitive forces model and the broad factors analysis. I agree with you that this is a great tool to use to include the internal and external factors. Politics should certainly be understood before entering into a foreign country and setting up camp. Learning about the macro-environmental factors would indeed need to be known to understand the impact of the environmental surroundings of where you would intend to expand globally (Corporate Finance Institute, 2021).
The competitive forces model is also extremely pertinent as you mention. Knowing the competition and the current market is crucial to the success of the organization. I appreciate that you talk about how difficult entry gives you a competitive advantage. I don't know if I understood that before, but you make a very good point in that regard. So with the difficult entry the contract agreement, is longer and there are better benefits offered? “
__________________________
PEER Discussion post
After reviewing the response of Deborah, I also collaborate with her opinion that there are still more positive ideas that can lead to improvements in the global market planning strategies. The adoption of technology can lead to various promotions in conjunction with the local production at the international business. Different decisions made by the stakeholders are mostly triggered by the level of competition that exists on the organization's premises. Moreover, the present-day global competition entails some aspects which evaluate the market share. On most occasions, several organization strategies, including the multinational rivals, do not differ looking at the approaches, productivity, and experience.
Following the previous meeting with Deborah, I learned various aspects which as a team, we should all bear in mind, and these aspects entail the most suitable approaches concerning the movement in connection with more formal analysis (Harrison, Freitas, Drinnan, Campos, Masci, di Maria & Whitaker, 2019). With the traditional analysis approaches, one can better understand because the visual elements pictorial are always running in one's mind. Although the formal analysis aspect takes much or longer time to express certain information, it provides evaluations and definitions which don't require clerical explanations (Turkmen, den Hartog, Ranise, & Zannone, 2017).
Following the Tiffany and mike suggestion ...
Porter's five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization economics to analyze five competitive forces that determine the attractiveness and therefore profitability of an industry. The five forces are: the threat of new entrants, the threat of substitutes, the bargaining power of suppliers, the bargaining power of buyers, and the intensity of rivalry among existing competitors. Analyzing these forces can help companies identify whether an industry is attractive to compete in from a profitability perspective.
Mtm4 white paper industry analysis (featuring the 5 forces)IntelCollab.com
This document provides an overview of Michael Porter's five forces industry analysis framework. It describes the five competitive forces that shape industry competition and profitability - threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, and competitive rivalry. The document outlines how to apply the five forces analysis to understand an industry's structure and attractiveness. Analysts are advised to define the industry properly, assess each force individually, and consider the aggregate impact to determine profitability.
Porter's five forces model is a framework for analyzing industry competition and profitability. It examines the competitive forces that determine industry attractiveness: threat of new entrants, power of suppliers/buyers, threat of substitutes, and rivalry among existing competitors. While still valuable, critics argue it may overlook industry dynamics and convergence. Later research emphasizes incorporating technological changes, multi-level industry analysis, and potential for complementary products when applying the five forces model.
Similar to Influences of Poter’s five forces model in an industry (20)
Human Resource Information System: A study on Telecommunication Industry of B...Masum Hussain
In today’s organizations Human Resource is considered as one of the key resources of business organizations. The transaction processing layer of information system (IS) in human resource function deals with routine activities like attendance recording and payroll calculations. The operational level activities also include maintaining the employee records which is used as a basis for strategic layers. With the growing importance of human resource management and increasing size of the organizations, maintenance of employee related data and generating appropriate reports are the crucial aspects of any organization. The Human Resource Information System (HRIS) is a collection of men, tools, procedures and software to perform various business tasks at various levels in the organization. Many organizations have separate MIS departments which are involved in maintaining records, performing transactions, report generations and consolidation of the important information which will be supplied to the various levels of the management. MIS has three basic levels: operational, middle management and top management where the information is passed from bottom to top. This report is an attempt to design an information system for Bangladesh telecommunication industry, which involves attendance capturing & recording system which will be used in monitoring the staff, control over the irregularities and reporting to the top management and show how it is useful in decision making. This paper is an attempt to highlights the role of information systems in Human Resource Management and show how it helps in taking management decisions related to management function especially for the top management.
Today, the world has undergone massive changes: the Internet bubble has come and gone, and emerging countries such as China and India have become prominent global users and providers of ICT equipment and services. Struggling to emerge from the financial crisis, developed economies are striving to return to higher levels of growth and competitiveness while fighting stubbornly high unemployment rates, especially among their youth. Both emerging and developed economies are focusing on innovation, competing globally for talent, resources, and market shares. Information flows and networks have spread across borders in ways that could not be imagined before the onset of the Internet, the global adoption of mobile telephony and social networks, and the rapid growth of broadband. Business models have been redefined, the workplace has been redesigned and entire functions of society (education, health, security, privacy) are being rethought. Apart from these HRIS has various advantages and the most crucial is the employee retention as employees as themselves crucial for the organizations; it is also ratified by all that an HRIS blunt the edge of staff attrition by providing HR officers with the information they need.
Managing team and organizational conflictMasum Hussain
This document discusses managing team and organizational conflict. It begins by defining team conflict and discussing its nature. It then provides a six-step procedure for dealing with conflict in teams that involves listening, understanding other perspectives, showing concern for relationships, finding common ground, generating new solutions, and reaching agreements. It also discusses types of team conflicts, sources of conflict, and effective ways to deal with team conflict. For organizational conflict, it covers types, causes, positive and negative outcomes, and effects on performance. Finally, it discusses conflict resolution, resolution of organizational conflict, and benefits of proper conflict management.
Managing team and organizational conflictMasum Hussain
This document provides an overview of organizational conflict and ways to manage it. It begins with an introduction discussing different views of conflict - the traditional view that sees it as negative, and more modern views that see proper management as key. It then discusses sources and causes of conflict within organizations, including structural issues, role conflicts, and personal disputes. The document outlines costs of conflict for both organizations and employees, including lost time and productivity. It proposes several conflict resolution strategies for managers, such as conflict management styles, structural changes, and open communication. The summary aims to provide a concise yet comprehensive overview of the main topics and arguments covered in the document.
Organizational change in transition periodMasum Hussain
As the Greek philosopher Heraclitus (525 – 475BC) pointed out: change alone is unchanging. Nowhere is this truer than in corporate North America. Globalization; quantum leaps in technology; mergers and acquisitions; shifting markets and client demands; and, significant changes in the workforce make changing to survive a strategic imperative. All organizations need to have a greater reach, be in more places, be aware of regional and cultural differences, and integrate coherent strategies for different markets and communities. (Kanter, 1999) Failure to change, to change rapidly enough, or to make the right changes, has turned corporate giants into subsidiaries, seemingly overnight. With change having been a constant for over 2500 years, why are businesses still so bad at managing it? Why do so many change initiatives wither and die leaving only confusion and mangled processes in their wake? This paper explores some of the reasons corporate change programs fail and offers some ideas as to how organizations institutionalize change to become a constantly evolving success story.
Influence of Work-life balance in employee’s performanceMasum Hussain
This document discusses work-life balance and its influence on employee performance. It defines work-life balance as achieving satisfaction in both work and personal life spheres. A history of work-life balance issues is provided dating back to labor movements in the late 1800s fighting for an 8-hour workday. Reasons for imbalance like long hours and responsibilities at work and home are explained. Risks of poor work-life balance include health issues, conflicts, and lower performance. Solutions proposed are flexible schedules, time-off, and family-friendly policies. Benefits discussed are improved productivity, retention, health and morale. Recommendations target both employers to provide support and employees to maintain boundaries and self-care.
Influence of Work-life balance in employee’s performanceMasum Hussain
Work–life balance is a concept including proper prioritizing between "work" (career and ambition) and "lifestyle" (health, pleasure, leisure, family and spiritual development/meditation. This is related to the idea of lifestyles choice. The work–leisure dichotomy was invented in the mid-1801s. Paul Krassner remarked that anthropologists use a definition of happiness that is to have as little separation as possible "between your work and your play". The expression "work–life balance" was first used in the United Kingdom in the late 1970s to describe the balance between an individual's work and personal life. In the United States this phrase was first used in 1986 The business case for work-life balance practices, as espoused by many organizations, rests on attracting better applicants and reducing work-life conflict among existing employees in order to enhance organizational performance. This review of the literature provides some evidence for the claim regarding recruitment, but there is insufficient evidence to support the notion that work-life practices enhance performance by means of reduced work-life conflict. We suggest that the business case may therefore need to be modified to reflect the number of additional routes by which work-life balance practices can influence organizational performance, including enhanced social exchange processes, increased cost savings, improved productivity, and reduced turnover. The impact of these processes may, however, be moderated by a number of factors, including national context, job level, and managerial support.
The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage.
The rate at which employees leave a company and are replaced by new Employees. One of the critically challenging issues in business world. Estimated probability that employees will stay or leave the organization. May triggered by - quits, attrition, exits, mobility, migration, succession. Obstacles toward achieving organizational objectives. Delay in innovation process & weak service consistency. Increasing pressure for the current employees in organization & Reflects poor organizational image. Overall bad impact on organizational performance & effectiveness.
Industrial relations are the relationship between management and employees or among employees and their organization. Industrial relation deal with either the relationships between the state and the employers and the workers organization or the relation between the occupational organizations themselves. The ILO uses the expression to denote such matters as freedom of association and the protection of the right to organize, the application of the principles of the right to organize, and the right of collective bargaining, collective agreements, conciliation and arbitration and machinery for cooperation between the authorities and the occupational organizations at various levels of the economy.
The term Industrial Relations refers to relationship between Management and Labor or among Employees and their organizations that characterize or grow out of employment. Theoretically speaking, there are two parties in the employment relationship labor and management. Both parties need to work in a spirit of cooperation, adjustment and accommodation. In their own mutual interest certain rules for co-existence are formed and adhered to. Over the years, the State has also come to play a major role in Industrial Relations one, as and initiator of policies and the other, as an employer by setting up an extremely large public sector.
Importance of information system in raising public awareness about domestic v...Masum Hussain
Across the globe, information system tools have helped fuel social movements. Information system has been shown to strengthen social actors’ ability to challenge and change power relations in society, providing platforms for debate, reflection, influencing and mobilizing people. To better understand the potential of information system to engage especially young people in efforts to prevent domestic violence the Partners for Prevention regional project, Engaging Young Men Through Information system for the Prevention of Domestic violence’ which supported information system awareness campaigns designed to raise awareness and motivate young people to take action to prevent domestic violence has revealed practical lessons from three awareness campaigns on the effective use of information system tools for violence protection.
Use of technologies in the banking sector of BangladeshMasum Hussain
Among the financial service industry, the banking sector was one of the first to embrace rapid globalization and benefits significantly from technology development. The technological revolution in banking started in the 1950s, with the installation of the first automated bookkeeping machines at banks. This was well before the other industries became tech savvy. The first Automated Teller Machine (ATM) is reported to have been introduced in the USA in 1968 with only a cash dispenser. Automation in banking have become widespread over the past few decades as banks quickly realized that much of their labor intensive information-handling processes could be automated the use of computers. Against this background the paper examines the technology driven banking services reference to the present and future of Technology driven banking in Bangladesh.
Use of technologies in the banking sector of BangladeshMasum Hussain
Among the financial service industry, the banking sector was one of the first to embrace rapid globalization and benefits significantly from technology development. The technological revolution in banking started in the 1950s, with the installation of the first automated bookkeeping machines at banks. This was well before the other industries became tech savvy. The first Automated Teller Machine (ATM) is reported to have been introduced in the USA in 1968 with only a cash dispenser. Automation in banking have become widespread over the past few decades as banks quickly realized that much of their labor intensive information-handling processes could be automated the use of computers. Against this background the paper examines the Technology driven banking services reference to the present and future of Technology driven banking in Bangladesh.
Importance of information system in raising public awareness about domestic v...Masum Hussain
Across the globe, information system tools have helped fuel social movements. Information system has been shown to strengthen social actors’ ability to challenge and change power
relations in society, providing platforms for debate, reflection, influencing and mobilizing people. To better understand the potential of information system to engage especially young
people in efforts to prevent domestic violence the Partners for Prevention regional project, Engaging Young Men Through Information system for the Prevention of Domestic violence’
which supported information system awareness campaigns designed to raise awareness and motivate young people to take action to prevent domestic violence has revealed practical
lessons from three awareness campaigns on the effective use of information system tools for violence protection.
Role of compensation practices on employees’ motivation: A study on Prime Ban...Masum Hussain
Workforce today is more expressive about their needs. Employees desire the best of everything competitive salaries, comfortable & inspirational lifestyles, job security, career enhancement options, work-life balance, and so on. Competition for talent is ever increasing and organizations need to have well-defined philosophies and strategies to help them develop innovative ways of tapping intrinsic motivation of employees by engaging their hearts and minds. The focus should be given on how managers are able to implement these types of motivation into their specific work place. This will show how motivation is important to all industries, and how it can change and impact the amount sales a bank performs. Motivated employees will in turn create a successful bank.
Development of internet technology in BangladeshMasum Hussain
Bangladesh is a developing country of South Asia with a huge population of 160 million living within a small geographical boundary of 1,47,570 square kilometers. Bangladesh is popularly known as one of the most densely populated countries of the world where the density rate is 1015 per sq. km. So it's a great challenge for the Bangladesh government to feed up the increasing population as the cultivable lands are decreasing day by day. Moreover providing cloths, accommodation facilities, giving education and health care facilities to the people which are the primary duties of the government are also becoming difficult for the increasing population. Apart from these being a developing country the government can't also affords to set up new industries and create employment opportunities for the people. So it's very difficult for the country to compete with the rising economic powers in the global arena with the burden of this population. But it's a matter of concern that there is no chance of decreasing these problems in upcoming days rather these are turning into a devastating shape. Proper and planned utilization of internet technology can be a nice solution in this regard. Somebody may be surprised to hear this. They may argue that how it's possible to change the overall scenario of the country through using internet technology. Rather they may show the logic against this theory and say that use of technology will accelerate unemployment problems of the country, high cost is involved to use this and expert knowledge is required to avail this facility of modern science. But the reality doesn't match with their imagination. Here I'll try my level best to prove the fact that use of internet technology can be a great medium for the sustainable development of the country through logical explanation from different points of view.
The story behind the first concerted effort to make financing accessible to the world’s poorest is the stuff of folklore. Befitting the goal of poverty alleviation, the setting for this early experiment was a time of great tragedy in Bangladesh, one of the poorest countries in the world. A small country in the Indian subcontinent with a population of 130 million, a gross national product (GNP) per capita of about $300 and a literacy rate of only 38 percent for those over 15 years of age, 1 Bangladesh experienced drought and famine in 1974 that killed 1.5 million people (Macfarlane 2002). Having recently completed studies as a Fulbright scholar in the United States, Professor Mohammad Yunus was lecturing on economic theory at Chittagong University and growing increasingly frustrated at his inability to ease his neighbours’ suffering.
Understanding barriers to youth entrepreneurship as a career choice for youthMasum Hussain
People say this is the age of business as it is backed by sophisticated technologies, blessed by loads of relevant information. & in this business age the young people are leading from the front as entrepreneurs. Wherever you go from Silicon Valley to Middle East young talents are making significant marks in creating new businesses even sometime more efficiently than the older experienced people. Think of Mark Zukerbourgh, or Michael Yung, they are shaking the world with their innovational business ventures, & people like them are at speed in growing. Different studies provide proof that the young people are the greatest contributors in the arena of business.
Sylhet is a division & a major city of North Eastern area of Bangladesh. This city is rapidly growing than the other cities of this country because of her peoples increasing purchasing power as the area is booming with business projects, a lots of liquid money is in the hands of the peoples as a result of remittance provided by the people living abroad. As we know many people of this area lives in different wealthy country of the world mainly in the United Kingdom (as we know in London there is a town named ‘ Bangla Town’ mainly inhabited by the Sylheties) & middle east many families have enough money in hand almost all the time. Problem with the Sylheti’s is that though they have money they are not interested in investing them in the country for business purpose as most of them are risk averse , & do not know the ABC of business.
Walton Hi-Tech Industries Ltd. is the one and only manufacturer of multi-staged Refrigerator, Freezer, Air Conditioner, Television and Motorcycle technology and is treated as one of the sophisticated manufacturing plant in Bangladesh and South Asia. R.B. Group (Parent Company) is one of the top business groups in the country operating with a great reputation since 1977. Walton has become a sensation all over Bangladesh and in the world of electronics, electrical and automobile industries.
Corporate Social Responsibilities and Managerial EthicsMasum Hussain
The document provides an introduction and objectives for an assignment on corporate social responsibility and managerial ethics. It discusses key topics like the definition of ethics, factors that influence ethical behavior, ethical issues in global management, and recurring challenges in integrating business and ethics research. The primary objective is to gain knowledge about social responsibility and why managers should follow ethical practices. The secondary objective is to understand concepts like evaluating corporate social performance and balancing stakeholder interests. It outlines the methodology used, which involved reviewing books, magazines, journals, newspapers, and websites on the topic.
The World Bank was created at Bretton Woods in 1944 to lend to European countries to help them rebuild after World War II. It was the world's first multilateral development bank, and was funded through the sale of World Bonds. Its first loans were to France and other European countries, but soon lent money to Chile, Mexico and India to build power plants and railways. The Bank came into formal existence on 27 December 1945 following international ratification of the Bretton Woods agreements, which emerged from the United Nations Monetary and Financial Conference (1–22 July 1944). It also provided the foundation of the Osiander-Committee in 1951, responsible for the preparation and evaluation of the World Development Report. Commencing operations on 25 June 1946, it approved its first loan on 9 May 1947 (US$250M to France for postwar reconstruction, in real terms the largest loan issued by the Bank to date). Its five agencies are:
• International Bank for Reconstruction and Development (IBRD)
• International Development Association (IDA)
• International Finance Corporation (IFC)
• Multilateral Investment Guarantee Agency (MIGA)
• International Centre for Settlement of Investment Disputes (ICSID)
The World Bank's activities are focused on developing countries, in fields such as human development (e.g. education, health), agriculture and rural development (e.g. irrigation, rural services), environmental protection (e.g. pollution reduction, establishing and enforcing regulations), infrastructure (e.g. roads, urban regeneration, electricity), and governance (e.g. anti-corruption, legal institutions development). The IBRD and IDA provide loans at preferential rates to member countries, as well as grants to the poorest countries. Loans or grants for specific projects are often linked to wider policy changes in the sector or the economy. For example, a loan to improve coastal environmental management may be linked to development of new environmental institutions at national and local levels and the implementation of new regulations to limit pollution. The World Bank Institute is the capacity development branch of the World Bank, providing learning and other capacity-building programs to member countries. Two countries, Venezuela and Ecuador, have recently withdrawn from the World Bank. It is stated that it is also an observer on the United Nations Development Group.
How to Start Affiliate Marketing with ChatGPT- A Step-by-Step Guide (1).pdfSimpleMoneyMaker
Discover the power of affiliate marketing with ChatGPT! This comprehensive guide takes you through the process of starting and scaling your affiliate marketing business using the latest AI technology. Learn how to leverage ChatGPT to generate content ideas, create engaging articles, and connect with your audience through personalized interactions. From building your strategy and optimizing conversions to analyzing performance and staying updated with industry trends, this eBook provides everything you need to know to succeed in affiliate marketing. Whether you're a beginner looking to start your online business or an experienced marketer wanting to take your efforts to the next level, this guide is your roadmap to success in the world of affiliate marketing.
Embark on style journeys Indian clothing store denver guide.pptxOmnama Fashions
Finding the perfect "Indian Clothing Store Denver" is essential for those seeking vibrant, authentic, and culturally rich attire in the heart of Colorado. Denver, a city known for its diverse culture and eclectic fashion scene, offers a variety of options for those in search of traditional and contemporary Indian clothing. Whether you're preparing for a wedding, festival, or cultural event, or simply wish to incorporate the elegance and beauty of Indian fashion into your wardrobe, discovering the right store can make all the difference.
In this humorous and data-heavy Master Class, join us in a joyous celebration of life honoring the long list of SEO tactics and concepts we lost this year. Remember fondly the beautiful time you shared with defunct ideas like link building, keyword cannibalization, search volume as a value indicator, and even our most cherished of friends: the funnel. Make peace with their loss as you embrace a new paradigm for organic content: Pillar-Based Marketing. Along the way, discover that the results that old SEO and all its trappings brought you weren’t really very good at all, actually.
In this respectful and life-affirming service—erm, session—join Ryan Brock (Chief Solution Officer at DemandJump and author of Pillar-Based Marketing: A Data-Driven Methodology for SEO and Content that Actually Works) and leave with:
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In the face of the news of Google beginning to remove cookies from Chrome (30m users at the time of writing), there’s no longer time for marketers to throw their hands up and say “I didn’t know” or “They won’t go through with it”. Reality check - it has already begun - the time to take action is now. The good news is that there are solutions available and ready for adoption… but for many the race to catch up to the modern internet risks being a messy, confusing scramble to get back to "normal"
Basic Management Concepts., “Management is the art of getting things done thr...DilanThennakoon
The managers achieve organizational objectives by getting work from
others and not performing in the tasks themselves.
Management is an art and science of getting work done through people.
It is the process of giving direction and controlling the various activities
of the people to achieve the objectives of an organization Management is a universal process in all organized, social and economic activities. Wherever
there is human activity there is management.
Management is a vital aspect of the economic life of man, which is an organized group activity. A
central directing and controlling agency is indispensable for a business concern. The productive
resources –material, labour, capital etc. are entrusted to the organizing skill, administrative ability
and enterprising initiative of the management. Thus, management provides leadership to a
business enterprise. Without able managers and effective managerial leadership the resources of
production remain merely resources and never become production. Management occupies such an
important place in the modern world that the welfare of the people and the destiny of the country
are very much influenced by it.
1.2 MEANING OF MANAGEMENT
Management is a technique of extracting work from others in an integrated and co-ordinated
manner for realizing the specific objectives through productive use of material resources.
Mobilising the physical, human and financial resources and planning their utilization for business
operations in such a manner as to reach the defined goals can be benefited to as management.
1.3 DEFINITION OF MANAGEMENT
Management may be defined in many different ways. Many eminent authors on the subject have
defined the term "management". Some of these definitions are reproduced below:
In the words of George R Terry - "Management is a distinct process consisting of planning,
organising, actuating and controlling performed to determine and accomplish the objectives by the
use of people and resources".
According to James L Lundy - "Management is principally the task of planning, co¬ordinating,
motivating and controlling the efforts of others towards a specific objective",
In the words of Henry Fayol - "To manage is to forecast and to plan, to organise, to command, to
co-ordinate and to control".
According to Peter F Drucker - "Management is a multipurpose organ that manages a business and
manages managers and manages worker and work".
In the words of J.N. Schulze - "Management is the force which leads, guides and directs an
organisation in the accomplishment of a pre-determined object".
In the words of Koontz and O'Donnel - "Management is defined as the creation and maintenance
of an internal environment in an enterprise where individuals working together in groups can
perform efficiently and effectively towards the attainment of group goals".
According to Ordway Tead - "Management is the process and agency which directs and guides the
operations of an organisation in realising of established aim
Can you kickstart content marketing when you have a small team or even a team of one? Why yes, you can! Dennis Shiao, founder of marketing agency Attention Retention will detail how to draw insights from subject matter experts (SMEs) and turn them into articles, bylines, blog posts, social media posts and more. He’ll also share tips on content licensing and how to establish a webinar program. Attend this session to learn how to make an impact with content marketing even when you have a small team and limited resources.
Key Takeaways:
- You don't need a large team to start a content marketing program
- A webinar program yields a "one-to-many" approach to content creation
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The Strategic Impact of Storytelling in the Age of AI
In the grand tapestry of marketing, where algorithms analyze data and artificial intelligence predicts trends, one essential thread remains constant — the timeless art of storytelling. As we stand on the precipice of a new era driven by AI, join me in unraveling the narrative alchemy that transforms brands from mere entities into captivating tales that resonate across the digital landscape. In this exploration, we will discover how, in the face of advancing technology, the human touch of a well-crafted story becomes not just a marketing tool but the very essence that breathes life into brands and forges lasting connections with our audience.
From Hope to Despair The Top 10 Reasons Businesses Ditch SEO Tactics.pptxBoston SEO Services
From Hope to Despair: The Top 10 Reasons Businesses Ditch SEO Tactics
Are you tired of seeing your business's online visibility plummet from hope to despair? When it comes to SEO tactics, many businesses find themselves grappling with challenges that lead them to abandon their strategies altogether. In a digital landscape that's constantly evolving, staying on top of SEO best practices is crucial to maintaining a competitive edge.
In this blog, we delve deep into the top 10 reasons why businesses ditch SEO tactics, uncovering the pain points that may resonate with you:
1. Algorithm Changes: The ever-changing algorithms can leave businesses feeling like they're chasing a moving target. Search engines like Google frequently update their algorithms to improve user experience and provide more relevant search results. However, these updates can significantly impact your website's visibility and ranking if you're not prepared.
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4. Keyword Competition: Fierce competition for top keywords can make it hard to rank effectively. Businesses often struggle to find the right balance between targeting high-traffic keywords and finding less competitive, niche keywords that can still drive significant traffic.
5. Lack of Understanding of SEO Basics: Many businesses dive into the complex world of SEO without fully grasping the fundamental principles. This lack of understanding can lead to several issues:
Keyword Awareness: Failing to recognize the importance of keyword research and targeting the right keywords in content.
On-Page Optimization: Ignorance regarding crucial on-page elements such as meta tags, headers, and content structure.
Technical SEO Best Practices: Overlooking essential aspects like site speed, mobile responsiveness, and crawlability.
Backlinks: Not understanding the value of high-quality backlinks from reputable sources.
Analytics: Failing to track and analyze data prevents businesses from optimizing their SEO efforts effectively.
6. Unrealistic Expectations and Timeframe: Entrepreneurs often fall prey to the allure of quick fixes and overnight success. Unrealistic expectations can overshadow the reality of the time and effort needed to see tangible results in the highly competitive digital landscape. SEO is a long-term strategy, and setting realistic goals is crucial for success.
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What Software is Used in Marketing in 2024.Ishaaq6
This paper explores the diverse landscape of marketing software, examining its pivotal role in modern marketing strategies. It provides a comprehensive overview of various types of marketing software tools and platforms essential for enhancing efficiency, optimizing campaigns, and achieving business objectives. Key categories discussed include email marketing software, social media management tools, content management systems (CMS), customer relationship management (CRM) software, search engine optimization (SEO) tools, and marketing automation platforms.
The paper delves into the functionalities, benefits, and examples of each type of software, highlighting their unique contributions to effective marketing practices. It explores the importance of integration and automation in maximizing the impact of these tools, addressing challenges and strategies for seamless implementation across different marketing channels.
Furthermore, the paper examines emerging trends in marketing software, such as AI and machine learning applications, personalization strategies, predictive analytics, and the ethical considerations surrounding data privacy and consumer rights. Case studies illustrate real-world applications and success stories of businesses leveraging marketing software to achieve significant outcomes in their marketing campaigns.
In conclusion, this paper provides valuable insights into the evolving landscape of marketing technology, emphasizing the transformative potential of software solutions in driving innovation, efficiency, and competitive advantage in today's dynamic marketplace.
This description outlines the scope, structure, and focus of the paper, giving readers a clear understanding of what to expect and why the topic of marketing software is important and relevant in contemporary marketing practices.
Mastering Local SEO for Service Businesses in the AI Era"" is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Efficient Website Management for Digital Marketing ProsLauren Polinsky
Learn how to optimize website projects, leverage SEO tactics effectively, and implement product-led marketing approaches for enhanced digital presence and ROI.
This session is your key to unlocking the secrets of successful digital marketing campaigns and maximizing your business's online potential.
Actionable tactics you can apply after this session:
- Streamlined Website Management: Discover techniques to streamline website development, manage day-to-day operations efficiently, and ensure smooth project execution.
- Effective SEO Practices: Gain valuable insights into optimizing your website for search engines, improving visibility, and driving organic traffic to your digital assets.
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Don't miss out on this opportunity to elevate your digital marketing game and achieve tangible results!
Empowering Influencers: The New Center of Brand-Consumer Dynamics
In the current market landscape, establishing genuine connections with consumers is crucial. This presentation, "Empowering Influencers: The New Center of Brand-Consumer Dynamics," explores how influencers have become pivotal in shaping brand-consumer relationships. We will examine the strategic use of influencers to create authentic, engaging narratives that resonate deeply with target audiences, driving success in the evolved purchase funnel.
The advent of AI offers marketers unprecedented opportunities to craft personalized and engaging customer experiences, evolving customer engagements from one-sided conversations to interactive dialogues. By leveraging AI, companies can now engage in meaningful dialogues with customers, gaining deep insights into their preferences and delivering customized solutions.
Susan will present case studies illustrating AI's application in enhancing customer interactions across diverse sectors. She'll cover a range of AI tools, including chatbots, voice assistants, predictive analytics, and conversational marketing, demonstrating how these technologies can be woven into marketing strategies to foster personalized customer connections.
Participants will learn about the advantages and hurdles of integrating AI in marketing initiatives, along with actionable advice on starting this transformation. They will understand how AI can automate mundane tasks, refine customer data analysis, and offer personalized experiences on a large scale.
Attendees will come away with an understanding of AI's potential to redefine marketing, equipped with the knowledge and tactics to leverage AI in staying competitive. The talk aims to motivate professionals to adopt AI in enhancing their CX, driving greater customer engagement, loyalty, and business success.
THE STORY COMMUNICATION Credential 2024.pptxhuyenngo62
The Story Communication là công ty quảng cáo truyền thông tích hợp (IMC) được xây dựng trên thế mạnh về Digital & Performance.
#Assemble #Integrity #Transformation #Initiative
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Influences of Poter’s five forces model in an industry
1. Surma Tower, Sylhet
An Assignment on
““““Influences of Poter’s five forces model in an industry”Influences of Poter’s five forces model in an industry”Influences of Poter’s five forces model in an industry”Influences of Poter’s five forces model in an industry”
Course title: Advanced Marketing Management
Course code: MKT-613
Submitted to:
Md. Jahangir AlamMd. Jahangir AlamMd. Jahangir AlamMd. Jahangir Alam
Assistant Professor
Department of Business Administration
Leading University, Sylhet
Prepared by:
Masum HussainMasum HussainMasum HussainMasum Hussain
ID: 1611017021
Section: C
Semester: 4th
Batch: 38th
Program: MBA
Department of Business Administration
Leading University, Sylhet
Date of Submission:Date of Submission:Date of Submission:Date of Submission: 20202020 August, 2016August, 2016August, 2016August, 2016
2. Abstract
Porter’s Five Forces model is a powerful management tool for analyzing the current
industry profitability and attractiveness by using the outside-in perspective. Within the last
decades, the model has attracted some criticism because of the developing Internet economy.
Due to an increasing significance of Digitalization, Globalization and Deregulation, the
industry structure of the ‘Old Economy’ changed fundamentally. The ‘New Economy’ is not
comparable with the ‘Old Economy’, which is the basis of the Five Forces model. Moreover
the last decades have shown that Information Technology became more and more important.
Nowadays Technology is one of the most important drivers for change and not only
important for the implementation of change. Today new technology is one of the most
important drivers for change. Furthermore Porter also couldn’t take the growing significance
of ‘Government Deregulation’ into account. In 1979 the government was able to regulate the
market by defining and enforcing “property rights and the rules of competition”. In the past
20 years, governmental influence on industries decreased steadily. Therefore the most of the
concerned industries (airlines, communication, or banking industry) were able and
constrained to search for alternatives and to structure their business in a new way.
The outcome of this critical literature review shows that the three new forces changed
the industry structure but they do not restructure the model. Nowadays it is already a matter
of course for many companies to think and act globally. This matter of course will expand
continuously in the coming years. On the one side, the today’s technological progress in the
areas of logistics, distribution or communication provides companies to buy and sell products
at a global level. Furthermore organizations are able to cooperate better with other
organizations. On the other side, the end consumers have the ability to compare prices
worldwide and to buy the product with the best price-performance ratio. This also impacted
the small-, and medium-sized companies. Now, they have international collaborators and they
are no longer operating in a local market with local competitors. Porter’s Five Forces cannot
be considered as outdated. The basic idea that each company is operating in a network of
Buyers, Suppliers, Substitutes, New Entrants and Competitors is still valid. The three new
forces just influence each of the Five Forces. An example is that the Bargaining Power of
Buyers increased due to the access to much more information because of the Internet.
3. Acknowledgement
At first, I’m grateful to Almighty Allah for creating me in such a
beautiful country like Bangladesh and also for controlling our life.
For the mercy of Him, I have got such courage to start this
assignment on InfluencesInfluencesInfluencesInfluences of Poter’s five forces model in an industry.of Poter’s five forces model in an industry.of Poter’s five forces model in an industry.of Poter’s five forces model in an industry.
After that I would like to give thanks to our honorable Head
of the Department Prof.Prof.Prof.Prof. NazruNazruNazruNazrullll IsIsIsIsllllamamamam for giving me the opportunity
to study in this subject. I would like to express my thanks to the
librarian of Leading University for all his help that I have received
from him.
My respected parents who gave me mental support and inspiration
for my assignment, there is a special thanks for them. I also would
like to give a lot of thanks to my honorable course teacher, Md.Md.Md.Md.
Jahangir AlamJahangir AlamJahangir AlamJahangir Alam for giving me a wonderful opportunity to make such
an interesting and valuable assignment and giving me a clear concept
about the assignment.
At last but not the least, without the help of my friends and
classmates it was quite impossible to prepare such kind of
assignment. They gave me some necessary information about this
topic which was unknown to me. So, I would like to give thanks to
all of them.
4. Table of contents
Subjects pages
1. Introduction 5
2. The Five Forces model 6
3. Benefits of Applying for Evaluating Market Attractiveness 7
4. Defining the relevant industry 7
5. Influential factors in the market 8
a. A larger number of firms 8
b. Slow market growth 8
c. Low switching costs 8
d. High exit barriers 8
6. Development of Digitalization, Globalization and Deregulation 9
7. The Impact of Globalization on the Industry structure 9
8. The Impact of Deregulation on the Industry structure 10
9. The Impact of Digitalization on the Industry structure 10
10.Limitations and Criticisms of the Five Forces model 11
11.Recommendations 12
12.Conclusion 13
13.References 14
5. Introduction
Michael E. Porter of Harvard Business School developed the Five Forces model in the late
1970s. The Five Forces model is a simple but influential tool for the identification where
power lies in a certain business situation by using the outside-in perspective. The framework
identifies five forces in the microenvironment that drive competition and threaten a
company’s ability to make profit. The derivation of the Five Forces framework of Porter is
the industrial economics approach. The idea is that the attractiveness of market and its overall
profitability can mainly be defined by the market structure. The market structure in turn
influences the strategic behaviour of organizations, e.g. market success depends on the
competitive strategy. Thus the organizational success is therefore indirectly dependent on the
market structure. According to Porter the “awareness of these forces can help a company
stake out a position in its industry that is less vulnerable to attack”. However it is necessary to
mention that the Five Forces have diverse degrees of impact in certain industries.
Furthermore Mohapatra states that “individual forces and their collective impact will change
as the government policies and macroeconomic and environment conditions change“. Due to
the reason that the model was developed in 1979, it is questionable if the forces are still
relevant. It seems doubtful that the model of Porter, which is available for more than 35 years
without any changes, is still relevant for analyzing the balance of power within a particular
industry.
The last decades show that Information Technology (IT) became more and more important in
order to achieve competitive advantage. Today’s organizations have better access to far more
information about their customers, suppliers or their competitors. This also increases the
possibility of better co-operation or better competition. But the model of Porter does not
include IT as a separate competitive force, “IT was only considered as a means of supporting
the five forces”. One reason for ignoring the IT forces could be the fact that the ‘old
economy’ used Information Technology in order to implement changes. But the times are
changing and also the role of technology changed. This paper provides a critical literature
review and a new theory development. The first part of this paper deals with an introduction
of the model. The benefits of the competitive forces framework are examined below but also
the forces and their underlying influential factors are discussed. After introducing the model
the next part is about limitations and criticism of Porter`s Five Forces. Afterwards, the second
part deals with impacts of the three new forces:
(1) Digitalization,
(2) Globalization and
(3) Deregulation.
6. The Five Forces model
The basis of Porter’s Five Forces is the approach of the industrial organization theory (IO).
The IO assumes that the attractiveness of an industry, in which a company operates, is
determined by the market structure due to the reason that market structure affects the
behaviour of market participants. The Five Forces framework is a “useful starting point for
strategic analysis even where profit criteria may not apply”. In order to create a strategy it is
very important to have enough knowledge about the industry in which the company operates.
The factors that are influencing a company within an industry can be extremely various.
Therefore it is wise to consider only those factors that are important for all participating
companies within an industry. In addition to the competition among the existing competitors,
Porter’s Five Forces model identifies another four forces that characterize the intensity of
competition within an industry: Bargaining power of Supplier, Bargaining power of Buyer,
Threat of Substitutes and Threat of new Entrants. The interaction of these Five Forces is a
constant threat to the success of a company.
The force ‘Rivalry among existing competitors’ includes several forms of competition, for
instance “price discounting, new product introductions, advertising campaigns, and service
improvements”. A high level of rivalry between existing competitors can influence the
profitability of an industry. It depends on the “intensity with which companies compete and,
second, on the basis on which they compete”. This Force can be influenced by industry
growth rate, fixed costs/ storage costs, number of firms/competitor balance, switching costs
between competitors, differentiation, or exit barriers.
“New entrants to an industry bring new capacity, the desire to gain market share, and often
substantial resources”. The existence of entry barriers limit the number of companies in the
industry and therefore influences the ‘rivalry among existing competitors’ furthermore
companies who enter an existing market directly affect the competitive advantages. The
additional supply for the same demand decreases the profit of the market participants. The
lower the barriers to entry are, the higher the threat of new entrants is. “The height of barriers
to entry has been found consistently to be the most significant predictor of industry
profitability” Porter distinguishes between six significant barriers to enter the market:
(1) Economic of Scale
(2) Product Differentiation,
(3) Capital Requirements
(4) Cost Disadvantages
(5) Access to Distribution Channels
(6) Government Policy
Bargaining Power of Supplier defines the risk that suppliers threaten companies with
increasing prices for goods or services. “Powerful suppliers can thereby squeeze profitability
out of an industry unable to recover cost increases in it own prices”. There are different
factors which are determined as indicators for high bargaining power of suppliers: For
example the industry is dominated by a few companies and is therefore more concentrated
than the industry it sells to, or the industry is not the most important customer of the supplier
7. group. The bargaining power of suppliers can be influenced by the size of the supplier, the
number of suppliers, and the availability of alternative customers. The power of customers
can be described as the “flip side of powerful suppliers”. If the buyers have a high market
power they are able to push prices downward, prevail better quality or they can force
expanded services.
These also reduce the profitability of the industry. The bargaining power of buyer is high if
the buyers are large, they are ably to switch easily to another supplier and they are few in
numbers. In the broadest sense all competitors within an industry compete with industries that
produce substitutes. Substitute’s products and services limit the potential profit of an industry
by defining a cap for the prices of their products or services. The identification of substitutes
is a search for products or services that can fulfill the same function as products of the
industry of the considered industry. According to Hubbard and Beamish there are several
factors that influence the Threat of Substitutes, e.g. switching costs between substitute
products/services and industry product, or buyers’ addiction to buy substitutes.
Benefits of Applying the Five Force model for Evaluating Market Attractiveness
After analysing the Five Forces, a company is able to state about industry profitability and
attractiveness. A strategist can come up with the strengths and the weaknesses of an
organization and is able create a plan for a stronger position within the industry. The
Competitive Forces oversimplified the micro-economic theory by using only Five Forces. It
provides the opportunity to examine and evaluate complex interactions of competitors in an
industry in a structured way. The Five Forces framework “went beyond a more simplistic
focus on relative market growth rates in determining industry attractiveness”. A further
benefit according to Grundy is that the managers set a higher focus on the external
environment in comparison to the traditional ‘SWOT’ analysis. The goal of the Five Forces
framework is not only to assess industry profitability and attractiveness but also to
comprehend the “underpinnings of competition and the root causes of profitability”.
Defining the relevant industry
Defining the industry in which competition actually takes place is important for good industry
analysis, not to mention for developing strategy and setting business unit boundaries. Many
strategy errors emanate from mistaking the relevant industry, defining it too broadly or too
narrowly. Defining the industry too broadly obscures differences among products, customers,
or geographic regions that are important to competition, strategic positioning, and
profitability. Defining the industry too narrowly overlooks commonalities and linkages across
related products or geographic markets that are crucial to competitive advantage. Also,
strategists must be sensitive to the possibility that industry boundaries can shift. The
boundaries of an industry consist of two primary dimensions. First is the scope of products or
services. For example, is motor oil used in cars part of the same industry as motor oil used in
heavy trucks and stationary engines, or are these different industries? The second dimension
is geographic scope. Most industries are present in many parts of the world. However, is
competition contained within each state, or is it national? Does com- petition take place
within regions such as Europe or North America, or is there a single global industry?
8. The five forces are the basic tool to resolve these questions. If industry structure for two
products is the same or very similar (that is, if they have the same buyers, suppliers, barriers
to entry, and so forth), then the products are best treated as being part of the same industry. If
industry structure differs markedly, how- ever, the two products may be best under- stood as
separate industries. In lubricants, the oil used in cars is similar or even identical to the oil used
in trucks, but the similarity largely ends there. Automotive motor oil is sold to fragmented,
generally un- sophisticated customers through numerous and often powerful channels, using
extensive advertising. Products are packaged in small containers and logistical costs are high,
necessitating local production. Truck and power generation lubricants are sold to entirely
different buyers in entirely different ways using a separate supply chain. Industry structure
(buyer power, barriers to entry, and so forth) is substantially different. Automotive oil is thus
a distinct industry from oil for truck and stationary engine uses. Industry profitability will
differ in these two cases, and a lubricant company will need a separate strategy for competing
in each area.
Influential factors in the market
1. A larger number of firms increase rivalry because more firms must compete for the
same customers and resources. The rivalry intensifies if the firms have similar market
share, leading to a struggle for market leadership.
2. Slow market growth causes firms to fight for market share. In a growing market,
firms are able to improve revenues simply because of the expanding market.
3. Low switching costs increases rivalry. When a customer can freely switch from one
product to another there is a greater struggle to capture customers.
4. High exit barriers place a high cost on abandoning the product. The firm must
compete. High exit barriers cause a firm to remain in an industry, even when the
venture is not profitable. A common exit barrier is asset specificity. When the plant
and equipment required for manufacturing a product is highly specialized, these assets
cannot easily be sold to other buyers in another industry. Litton Industries' acquisition
of Ingalls Shipbuilding facilities illustrates this concept. Litton was successful in the
1960's with its contracts to build Navy ships. But when the Vietnam War ended,
defense spending declined and Litton saw a sudden decline in its earnings. As the firm
restructured, divesting from the shipbuilding plant was not feasible since such a large
and highly specialized investment could not be sold easily, and Litton was forced to
stay in a declining shipbuilding market.
BCG founder Bruce Henderson generalized this observation as the Rule of Three and Four: a
stable market will not have more than three significant competitors, and the largest
competitor will have no more than four times the market share of the smallest. If this rule is
true, it implies that:
9. a. If there is a larger number of competitors, a shakeout is inevitable
b. Surviving rivals will have to grow faster than the market
c. Eventual losers will have a negative cash flow if they attempt to grow
d. All except the two largest rivals will be losers
e. The definition of what constitutes the "market" is strategically important.
Whatever the merits of this rule for stable markets, it is clear that market stability and
changes in supply and demand affect rivalry. Cyclical demand tends to create cutthroat
competition. This is true in the disposable diaper industry in which demand fluctuates with
birth rates, and in the greeting card industry in which there are more predictable business
cycles.
Development of Digitalization, Globalization and Deregulation
In order to determine whether the Five Forces are still applicable, the next chapter analyses
the Industry in general concerning structural changes because of increasing significance of
‘Digitalization’. Due to the Digitalization two further forces gain more and more importance
and also significantly affect the competition: Globalization and Deregulation. Formerly
locally operating companies have built an international business environment because of the
technological progress and the improvement of communication and transport routes
(Downes, 1997). However, the affects of globalization are noticeable in almost each area of a
company and at each stage of the product life cycle. Just as important as Globalization is
Deregulation. In the last decades, government regulations have been eased. Especially the
USA and Europe withdraw from many industries (Recklies, 2001). Good examples for
Deregulation are the Airline Industry, the Communication Industry or the Energy Industry.
Innovation and Information Technology reconstructed the traditional industry structure and
allowed the existing company to reorient its activities (Downes, 1997). Likewise, new
companies enter existing markets. Further outcomes, such as outsourcing, rejection and
assimilation of business units, or forming alliances led to a restructuring of some industries.
The Impact of Globalization on the Industry structure
Today companies, that are regionally focused, have to integrate in a global environment, even
if they do not import or export goods. The advanced progress in the field of
logistics/distribution and communication enable global collaborations and products
purchases. However the customers also benefit from the Globalization process due to the
reason that they are able to compare global prices much easier and faster. This increases the
strategic requirements that go beyond pure price and quality considerations. The main focus
should be, in this regard, on customer loyalty and partner networks. Friedman (2005) states
that Globalization still has an increasing impact on business organization and practice. He
describes today’s Globalization, which began in the year 2000, as ‘Gloablization 3.0’. In
accordance with Friedman (2005) and Stiglitz (2007), political and social factors are the
primary forces that shape the ‘Globalization-Process’. These factors decrease for instance the
trade barriers or the economic reforms. Bang and Markeset (2012) identified five main
drivers of Globalization:
(1) Lower Trade Barriers
10. (2) Lower Communication Costs
(3) Lower Transportation Costs
(4) Spread of Technology
(5) Information and Communication
The Impact of Deregulation on the Industry structure
Nowadays governments withdraw from business areas. The outcome is an increasing
deregulation. Deregulation describes the removal of controls raised by the government on the
operation of industries. During the process of liberalization, residual risk is dissolved and
thus allows a restructuring of the affected areas. The consequences of the deregulation are
structural changes in the business that have to be considered. The airlines had to change their
strategies in order to face the new competitive environment (Subramanian, 2010). Further
implications are a strong development of the ‘hub-and spoke-system’, tougher competition
among the existing competitors, and decreasing prices (Bailey, 1992). It was quite difficult
for a new airline to enter a market and operate in other countries in Europe before the
‘Deregulation’. The reason for this lies in the fact that the entry barriers were high and
countries introduced protectionism in order to regulate the intenseness of rivalry within the
industry (Subramanian, 2010). Furthermore most airlines were owned by the state. Therefore
the intensity of rivalry among the existing competitors was low.
The Impact of Digitalization on the Industry structure
One of the most important aspects which are not considered by Porter is the ‘Digitalization’.
Due to the spread of the Internet and technological innovation, the global economy undergoes
a fundamental structural change. This structural change is mainly driven by innovative-, and
technology-oriented companies, whose business models are based on the possibilities of the
Internet. This process of change is generally described by the term “Internet-Economy”
(Emes, 2004). The increasing importance of digital products and the “Internet-Economy” put
Porter’s Five Competitive Forces into question. The Internet and the Digitalization have
almost influenced and changed the dynamic of all industries. Based on the dynamic evolution
as well as the complex process of transformation of some industries, it is quite difficult to
create a comprehensive situation analysis of the competition and the industry attractiveness
(Downes, 1997). The last years have seen the impact of new driving forces, which include
Porter’s theories inadequate. Today’s marketplace is strongly affected by the progress of
Information Technology (IT). Furthermore digital information goods are gaining more and
more importance within the economic cycle. As already mentioned in the Introduction part,
Porter considers IT as a tool for implementing strategies and changes (Andriotis, 2004;
Downes, 1997). But today it is even more important to consider IT as a driving force for
change (Downes, 1997). Looking towards the future,
11. Limitations and Criticisms of the Five Forces model
Although the Five Forces model is one of the most known and widely spread management
models in practice nowadays, the criticism became increasingly severe in the recent years.
The most detractors illustrate that economic conditions chanced fundamentally in the last
decades. One of the first criticisms is the fact that Porter (1979) has no justification for the
choice of the five environmental forces, which prove the validity of his choice. A further
criticism is that the model only generates snap-shots. Thus it is much more difficult to
determine markets with higher competition dynamic because they can change very quickly.
This demands a steady creation of new models. In their opinion taking the dimension time
into account might be beneficial for managers. If they take care about the ‘time dimension’,
managers are better able to consider market trends and changing environment. Furthermore
making use of the Five Forces framework does not guarantee a competitive advantage that is
inviolable and sustained. The reason for this lies in the fact that Five Forces framework is a
static model, which does not include consistently changes of the competitive environment.
According to Hill and Jones industry factors are able to justify business performance
variations. Those factors can only motivate 20 per cent of the variations in terms of market
share, growth and industry profitability (Grant, 2011). Today’s goal is not only to protect
against the Five Forces, it becomes more and more important to start collaboration and
maintain innovation due to the increasing power of the Internet and other information
technologies Flower (2004) and Downes (1997) criticize Porter’s model because of the
missing attention to ‘Digitalization’, ‘Globalization’, and ‘Deregulation’. Those three factors
are one reason why the industry structures changed during the last decades.
12. Recommendations
Nowadays it is already a matter of course for many companies to think and act globally. This
matter of course will expand continuously in the coming years. On the one side, the today’s
technological progress in the areas of logistics, distribution or communication provides
companies to buy and sell products at a global level. Furthermore organizations are able to
cooperate better with other organizations. On the other side, the end consumers have the
ability to compare prices worldwide and to buy the product with the best price-performance
ratio. This also impacted the small-, and medium-sized companies. Now, they have
international collaborators and they are no longer operating in a local market with local
competitors. Those companies who are not operating in a global environment are not able to
compete on the market anymore. Furthermore Globalization extends the markets. Due to this
force, more potential customers and more potential suppliers and partners are available which
also affects the Five Competitive Forces. Also the start-up barriers decrease, which means
that the Threat of New Entrants is high. Young companies can enter a market much easier
based on Lower Trade Barriers, Lower Transportation Costs or Lower Communication Costs.
This means that Globalization does not require a new force. Globalization has an impact on
the existing five forces, which should be considered by firms.
It was also shown in the last decades that industries such as the airline industry,
telecommunication firms or logistic firms were subject of a steady decline of government
influence. These developments restructure the traditional business through outsourcing or
rejection and recording of business applications. Moreover Deregulation influences the Five
Forces model as well. The threat of new entrants increases and therefore the rivalry among
the existing competitors will get tougher. Furthermore it is necessary to consider that these
three forces are limited in time. Sooner or later the point could be achieved where
governmental regulation for a specific industry does not exist anymore. The Digitalization
process has also a considerable bearing on the industry structure. Due to an increasing ability
of Information Technology, all market participants have access to extensive information.
Because of the spread of the Internet, the problem of asymmetric information becomes
smaller. On this basis, new business models can be created. That means that also companies
from outside of the industry can change the fundament of competition in the industry. A good
example, given by Downes (1997), is the shopping mall. In the past the operators of shopping
malls were able to get a competitive edge by large product variety and good locations. But
due to digitalization of the commerce, ‘electronic malls’ are much more interesting for the
customers. The customers are able to shop in the convenience of their home, 24 hours per day
and 7 days per week. Furthermore ‘electronic malls’ such as Ebay or Amazon can offer a far
greater product choice to potential customers.
13. Conclusions
Therefore traditional shopping malls are not able to be competitive on the market as in the
last decades. Taking a concluding view, the main difference between Porter’s Five Forces
and the ‘New Forces’ mentioned above is the role of Information Technology. The Five
Competitive Forces model uses Information Technology as a tool for implementing change.
But nowadays Information Technology has a much higher status in today’s business world.
Information Technology can be seen as factor and driver for change. “Technology in other
words, is not the solution. It’s the problem” (Downes, 1997). As a result, the Digitalization
fundamentally changes the basic conditions of industries. The Five Forces model is not
flexible enough to adapt these changes. Besides Digitalization can change the profitability of
an industry, but this can be beneficial in favour of customers and companies. In my opinion
many companies underestimate the Information power of the Internet and set the wrong
priorities. As Hemmatfar, Salehi and Bayat (2010) stated, that not only the nature of doing
business is affected by the Internet.
The Internet also changed the nature of competition. In the end, the Five Competitive Forces
model cannot be considered as outdated. Of course there was or still is a revolution, but this
does not challenge the validity of the whole model. The basic idea is that all companies are
operating in a micro-network of Buyers, Suppliers, Substitutes, Competitors and new market
actors. This idea is valid for each competition based economy. Today, as in the past,
companies are required to offer products and services that are competitive enough concerning
price and quality and ‘after-sales service’. It does not matter if we talk about ‘Old Economy’
or ‘New Economy’. However a strategist should not rely only on this model. Nowadays it is
important to consider other factors as well and make use of further management tools.
This study has found that generally it is not necessary to add an additional force to the Five
Forces model as Thurlby (1998) and Andriotis (2004) did. The Five Competitive Forces are
still applicable, but it is necessary to know the limitations of the model. Globalization,
Deregulation and Digitalization have an impact on the existing forces but they do not develop
a new one. As already mentioned in the previous parts, the three forces changed the industry
structure as well as the attractiveness of an industry. If the Entry Barriers are low due to the
Deregulation process and therefore the Threat of New Entrants is high, the industry is not that
attractive for companies than industries with high Entry Barriers and low Threat of New
Entrants. Digitalization can affect the attractiveness of an industry as well. Because of the
Internet, firms are able to reproduce products of their competitors. This increases the Threat
of Substitutes and consequently impacted the attractiveness of the industry negatively.
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