Elements and Michael Porter's value chain models essay
The Five Forces Model was developed by M. Porter to understand how five major competitive forces influence an industry. The five forces identified are: These forces determine the structure of an industry and the level of competition in that industry. The stronger the competitive forces in the industry, the less profitable it is. Michael Porter introduced the concept of value chain as all those activities that a company develops to offer a value-added product or service to the market. A product or service is the result of the combination of the added value in each of the different activities during the production process. The idea of the value chain was introduced in Michael Porter's classic strategy book Competitive Advantage as a way to understand and develop competitive positions. benefit. Although much of the book focuses on the value chain within a company, Michael Porter emphasizes the importance of connections between the company and its suppliers. Understand Michael Porter's value chain in no time. Find out everything you need to know about this valuable business tool with this practical and accessible guide. Harvard Business School professor Michael E. Porter has devoted much of his career to studying competitive advantage. One of his best-known concepts is the value chain,