Discussing Michael Porter's Strategies Business Essay
About Michael Porter. “He has influenced more executives – and more countries – than any other business professor in the world. Now he and an all-star team want to save the American economy.” Michael Porter is the founder of the modern strategy field and one of the world's most influential thinkers in the field of management and competitiveness. Michael Porter developed three generic competitive strategies that can be used by a company for competitive advantage. These three are: Cost leadership. Differentiation. Focus strategy. “Strategy is about making choices, trade-offs, it is about consciously choosing to be different” - Michael Porter. Operational effectiveness is more than just a competitive way of doing business; it means outperforming the competition in terms of the quality of services and products. In this sense, operational effectiveness cannot be a strategy, because “Strategy is nothing more than a marketing slogan that cannot withstand the competition,” Porter, p. 43. Competitive advantage. Business strategy. The competitive advantage of countries. Around the world, these terms quickly bring to mind the groundbreaking work of HBS professor Michael Porter, whose twenty years of research into these and related topics has resulted in more than fifteen books and sixty articles. Much of Porter's thinking, Summary. The article by Michael E. Porter and Mark R. Kramer focuses on the connection between corporate social responsibility and society with references to achieving the possible competitive advantage. For example, the authors analyze companies about their focus on corporate social responsibility as a means to compete effectively within Download. Michael Porter's Strategy Michael Porter is the highest honors university professor at Harvard University in the Harvard Business School. He is recognized as the father of competitive strategy. He has two main theoretical perspectives: one is 'the five forces model of competition', and the other is merely the 'of generic strategies'. Porter divides strategies into three approaches, including: 1. Cost leadership. A company that wants to gain a market advantage by controlling costs. There are two types of cost leadership: the low-cost strategy and the best-value strategy. Porter proposed four generic business strategies that can be applied to gain competitive advantage. The strategies relate to the extent to which a company's scope and activities are narrow versus broad and the extent to which a company seeks to differentiate its products. The short video below provides an overview of this. The main difference between Porter's Five Forces and SWOT analysis is the fact that Porter's model only analyzes external forces, while SWOT analysis takes into account both internal and external factors. Sources: Porter, ME How competitive forces shape strategy. Harvard Business, no. March 2nd- ,