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Porters Model


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Porters Model

  1. 1. Beyond porter-Criticisms of porters model <ul><li>Presented by </li></ul><ul><li>Varsha Rana (095) </li></ul><ul><li>Vishal Wadekar (119) </li></ul>
  2. 2. Porters model became a subject of critique because <ul><li>Economic conditions have changed fundamentally since that time </li></ul><ul><li>The rise of the Internet and of various e-business applications has strongly influenced nearly all industries. </li></ul><ul><li>These models cannot explain or analyze today’s dynamic changes that have the power to transform whole industries </li></ul>
  3. 3. Downes’ Three new Forces <ul><li>Larry Downes (an consultant, educator and speaker) Stated that the assumption made by porter are no longer viable </li></ul><ul><li>He designed a model with three forces to analyze a business environment </li></ul>
  4. 4. Digitalization <ul><li>Online shopping malls, operated by telecom operators, </li></ul><ul><li>Credit card organisations. </li></ul><ul><li>Online communication, </li></ul><ul><li>Collaboration, </li></ul><ul><li>Co-ordination and competition . </li></ul>
  5. 5. Globalization <ul><li>Local businesses became global </li></ul><ul><li>Customers engage in borderless commerce, </li></ul><ul><li>Competition kicks into overdrive. </li></ul>
  6. 6. Deregulation <ul><li>The insurance, telecom, and aviation sectors are de-regulated in India. </li></ul><ul><li>The energy sector was de-regulated in the United States in 2002, giving rise to competition and good service to consumers. </li></ul>
  7. 7. Based on Microeconomics !!!! <ul><li>Porters Five Forces </li></ul><ul><li>Bargaining Power of Suppliers </li></ul><ul><li>Bargaining Power of Customers </li></ul><ul><li>Rivalry between Existing Players </li></ul><ul><li>Threat of Substitutes </li></ul><ul><li>Threat of New Entrants </li></ul><ul><li>Areas of Microeconomics </li></ul><ul><li>Supply and demand theory </li></ul><ul><li>customer behavior, </li></ul><ul><li>price elasticity </li></ul><ul><li>Market structures, number of players, market size and growth rates </li></ul><ul><li>Substitution effects </li></ul><ul><li>Market entry barriers </li></ul>
  9. 9. NEW 8 FORCE MODEL Digitalization Globalization Deregulation ??????
  10. 10. CONCLUSION……….. <ul><li>We should apply the knowledge with their limitations in mind and use them as a part of larger framework of management tools and techniques </li></ul><ul><li>THANK YOU!!!!!!!!!!!!!!! </li></ul>