In business life, we are cooperating with friends and work mates. But what is the competitive situation for all businesses in private sector?
Professor Michael E. Porter is educated and professor in strategy and in competition. Strategy is about using quality on products and putting the prices up or down. And we can also use a combination of these things in strategy. In addition, we have 4 Ps of market strategies, and these are Products, Prices, Promotion and Place. And we should use these strategies when being located in the upper part of the business in question.
Which competitive forces do find in business life? There is rivalry among firms doing the same thing. And in addition to this competitive force, we have the following forces (five forces in total):
- Suppliers. The different suppliers give us products, and we should use vendors and put requirements on them to order what we need, and we can choose the relevant country in question.
- Buyers. Buyers are buying our products, and therefore they are responsible for all of our sales revenues in different markets.
- Substitutes. There is competition among products that are similar or quite similar to each other.
- New entrants. New organizations and actors are challenging the existent structure and the businesses that exist in different industries.
Porter's Five Forces of Competitive Position Analysis were developed in 1979 by Michael E Porter of Harvard Business School as a simple framework for assessing and evaluating the competitive strength and position of a business organisation.
Michael E. Porter is a star and a leading personality in strategy and in competition, and doing competition is the position where we are in business life. And we are doing everything in many businesses, as evaluating revenues and controlling costs, and we are doing planning, implementation and follow-up in different processes to get the desired outcomes on market shares, growth, productivity, profitability and sales.
We should put demands on organizations, and to be the right places at the right times, and by having market and strategy competence, in order to know and to find what to do and why. And we need high competence of many manners in organizations, and we should work in markets by using our brains, and by using our knowledges. And there should not be any bullshit in organizations, and there should be real effects that can be measured and commented among many, and sometimes we must agree to disagree! And there should be status, respect and admiration in organizations to work in different positions! In addition, we should do legal things, and not be troublesome againt each other, but we should motivate and encourage each other, and there are good news that people want our best sides of ourselves, and that we are wanted in many organizations. We should apply for the positions that we want.
We should take the telephone when someone is calling us, and we should get jobs that we really want, and that there are market intelligence and competence in the positions that we apply for. And we can use Michael E. Porter’s framework and theory in firms and in nations, and also across nations. And across nations is either for firms in different foreign markets, or between different countries for the government in question.
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