Know about Michael Porter
Michael .E.Porter is one of the management gurus who is working as a professor in the Bishop William Lawrence University. The researches of Michael porter are focused on competitive strategy, international competitiveness, the relationship between competition and society, and the relationship between competitiveness and the natural environment. He is the author for 16 books and 75 articles including the books “Competitive Strategy”(1980); “Competitive Advantage”(1985); “The Competitive Advantage of Nations”(1990); “On Competition”(1998).[1]
[1] http://ksgfaculty.harvard.edu/michael_porter
Porter in his five force model he says that the five forces rivalry, threat of substitutes, buyer power, supplier power, barriers to entry influences the industry. Rivalry intensity among the firms is influenced by the characteristics such as more number of firms, slow market growth, high fixed costs, high storage costs, low switching costs etc. The products demand is affected when the price of substitute product changes. The high buying power makes the buyer to set the product prize and vice versa. If the supplier is powerful then the supplier fixes the prize of the product and vice versa. Entry of new firms in the market creates a threat to the existing firms.[3] The three strategies Cost Leadership, Differentiation, and focus can control the five forces.[4] The Value chain model has both primary activities and support activities of a company. The primary activity consists of Firm infrastructure, Human resource management, technology development; procurement and the support activities are inbound logistics, Operations, Outbound logistics, Marketing and sales, and service. Good implementation of these two activities makes the company successful.[5]
[3] http://www.quickmba.com/strategy/porter.shtml
[4] http://www.quickmba.com/strategy/generic.shtml
[5] http://www.valuebasedmanagement.net/methods_porter_value_chain.html
Porter’s five forces model is a good strategy for a firm in competitive market and this model will be even stronger if Porter has considered the innovative ideas and the research development that have done in the previous years. The value chain model by Porter is useful for the firms to frame their management infrastructure and to enhance their way of management by various activities.
Hope this information will be useful to the readers to know about one of the top 50 management gurus.
[1] http://ksgfaculty.harvard.edu/michael_porter
Porter in his five force model he says that the five forces rivalry, threat of substitutes, buyer power, supplier power, barriers to entry influences the industry. Rivalry intensity among the firms is influenced by the characteristics such as more number of firms, slow market growth, high fixed costs, high storage costs, low switching costs etc. The products demand is affected when the price of substitute product changes. The high buying power makes the buyer to set the product prize and vice versa. If the supplier is powerful then the supplier fixes the prize of the product and vice versa. Entry of new firms in the market creates a threat to the existing firms.[3] The three strategies Cost Leadership, Differentiation, and focus can control the five forces.[4] The Value chain model has both primary activities and support activities of a company. The primary activity consists of Firm infrastructure, Human resource management, technology development; procurement and the support activities are inbound logistics, Operations, Outbound logistics, Marketing and sales, and service. Good implementation of these two activities makes the company successful.[5]
[3] http://www.quickmba.com/strategy/porter.shtml
[4] http://www.quickmba.com/strategy/generic.shtml
[5] http://www.valuebasedmanagement.net/methods_porter_value_chain.html
Porter’s five forces model is a good strategy for a firm in competitive market and this model will be even stronger if Porter has considered the innovative ideas and the research development that have done in the previous years. The value chain model by Porter is useful for the firms to frame their management infrastructure and to enhance their way of management by various activities.
Hope this information will be useful to the readers to know about one of the top 50 management gurus.
posted by Prem @ 12:10 AM
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