1. Exploring the Porter’s Five Forces Analysis:
where we are now?
Prof. Dr. Salvatore Moccia, MBA
2. Salvatore MOCCIA – St. John’s University – ROME Campus
Nihil sub sole novum
(Nothing new under the sun)
3. Salvatore MOCCIA – St. John’s University – ROME Campus
Introduction
Michael Porter, 1979:
The nature and degree of
competition in an industry hinge on
five forces…awareness of these
forces can help a company stake out
a position in its industry that is less
vulnerable to attack…
4. Salvatore MOCCIA – St. John’s University – ROME Campus
Strategy and the Internet
Michael Porter, 2001:
The great paradox of the Internet is that its
very benefits – making information widely
available; reducing the difficulty of
purchasing, marketing and distribution;
allowing buyers and sellers to find and
transact business with one another more
easily – also make it more difficult for
companies to capture those benefits as
profits…the winners will be those that
view the Internet as a complement to, not a
cannibal of, traditional ways of thinking…
5. Salvatore MOCCIA – St. John’s University – ROME Campus
What happens in an Internet minute?
6. Salvatore MOCCIA – St. John’s University – ROME Campus
What happens in an Internet minute?
7. Salvatore MOCCIA – St. John’s University – ROME Campus
Welcome to the new economy!
8. Salvatore MOCCIA – St. John’s University – ROME Campus
Welcome to the new economy!
9. Salvatore MOCCIA – St. John’s University – ROME Campus
You can’t outrun the future if you don’t see it coming
Source: Goldman Sachs, Top Charts of 2015
10. Salvatore MOCCIA – St. John’s University – ROME Campus
Source: Goldman Sachs, Top Charts of 2015
You can’t outrun the future if you don’t see it coming
11. Salvatore MOCCIA – St. John’s University – ROME Campus
Are Porter’s Five Competitive Forces still applicable?
The “New Economy” is not comparable with the “Old
Economy”, which is the basis of the Five Forces model.
Moreover, the last years have shown that on-line reputation
became more and more important
12. Salvatore MOCCIA – St. John’s University – ROME Campus
Or do we need to introduce a new element?
On-line reputation?
Events which erode significantly the reputation equity of a company are more
common than might be imagined. The figure shows a frequency diagram for the
Global 1000 over a 5-year period, and the incidence of a negative reputation
event prompting a value loss exceeding a particular level in a single month.
Source: Oxford Metrics, Reputation Review 2011
13. Salvatore MOCCIA – St. John’s University – ROME Campus
Source: Edelman Trust Barometer
On-line reputation and Customers trust
14. Salvatore MOCCIA – St. John’s University – ROME Campus
Source: Nielsen Global Trust in Advertisement
On-line reputation and Customers trust
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Source: Oxford Metrics, Reputation Review 2011
On-line reputation and Value reaction
16. Salvatore MOCCIA – St. John’s University – ROME Campus
Source: Reputation Institute, Report 2015
On-line reputation and support: it matters
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Source: Reputation Institute, Report 2016
On-line reputation and support: Yes, it matters, indeed!
18. Salvatore MOCCIA – St. John’s University – ROME Campus
How powerful is Change.org?
19. Salvatore MOCCIA – St. John’s University – ROME Campus
How powerful is Change.org?
20. Salvatore MOCCIA – St. John’s University – ROME Campus
How powerful is Change.org?
Source: http://ssir.org/articles/entry/from_petitions_to_decisions
21. Salvatore MOCCIA – St. John’s University – ROME Campus
Who is Ana Riera?
22. Salvatore MOCCIA – St. John’s University – ROME Campus
Who is Ana Riera?
23. Salvatore MOCCIA – St. John’s University – ROME Campus
Who is Chiara Ferragni?
24. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, gravity wins…
25. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, gravity wins…
26. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, gravity wins…
27. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, gravity wins…
28. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, social media are important…
29. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, social media are important…
30. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, social media are important…
31. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, social media are important…
32. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, social media are important…
33. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, social media are important…
34. Salvatore MOCCIA – St. John’s University – ROME Campus
INPUT: NEWS
(on line and off line)
ANALYSIS
(origin, repercussion…)
ANALYSIS
(Front end and Back end)
In the new economy, it’s time to start talking about…
PREDECTIVE MODEL STRATEGY –
Step 1: Analysis
35. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, it’s time to start talking about…
PREDECTIVE MODEL STRATEGY –
Step 1: Analysis – Front - end
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In the new economy, it’s time to start talking about…
PREDECTIVE MODEL STRATEGY –
Step 1: Analysis – Front - end
37. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, it’s time to start talking about…
PREDECTIVE MODEL STRATEGY –
Step 1: Analysis – Front - end
38. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, it’s time to start talking about…
PREDECTIVE MODEL STRATEGY –
Step 1: Analysis – Front - end
39. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, it’s time to start talking about…
PREDECTIVE MODEL STRATEGY –
Step 1: Analysis – Front - end
40. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, it’s time to start talking about…
PREDECTIVE MODEL STRATEGY –
Step 1: Analysis – Back-end
41. Salvatore MOCCIA – St. John’s University – ROME Campus
In the new economy, it’s time to start talking about…
PREDECTIVE MODEL STRATEGY –
Step 2: Measurement and Active Response
Measurement
(real vs. standard)
Element Disruptive Patterns
(semantic technology)
Active Response Strategy
(Deviation, Cancellation…)
42. Salvatore MOCCIA – St. John’s University – ROME Campus
The P5F model was created when
the world was a different place. No
contemporary model would be
completed without considering the
most important modern day change:
the impact of social media, also on
business.
Old Economy Vs. New Economy
43. Salvatore MOCCIA – St. John’s University – ROME Campus
Through Social Media, the environment
has become both more dynamic and
complex. Connectivity has become an
enabler for:
-Speed of Communication;
-Dynamic Interaction;
-Volume and power of collective voice:
-Effectiveness of the message
Old Economy Vs. New Economy: Social Media
44. Salvatore MOCCIA – St. John’s University – ROME Campus
Are you still going to wait for the next big thing?
