The Five Competitive Forces That Shape Strategy

Рет қаралды 3,130,481

16 жыл бұрын

An Interview with Michael E. Porter, Professor, Harvard University. Porter's five competitive forces is the basis for much of modern business strategy. Understand the framework and how to put it into practice.

Пікірлер: 654

@user-oc7uu8ss1x 4 жыл бұрын

Who is also here because of uni?

@studyfayz566 4 жыл бұрын

Al Belfort pray for me as my end semester exam is due tomorrow

@PeterKallio 4 жыл бұрын

@@studyfayz566 Same here :)

@MrLOLSager 4 жыл бұрын

My professor explained this so poorly, let’s hope I’ll understand it now

@Exx777 4 жыл бұрын

im here bcs of corona

@monicarachel6825 4 жыл бұрын

@mariselidiazmarin2160 8 жыл бұрын

(F1) Bargaining power of customers. (F2) bargaining power of suppliers. (F3) Threat of new entrants. (F4) Threat of substitutes. (F5) Rivalry among competitors

@perseverancemaraire3651 8 жыл бұрын

+Mariseli DIAZ MARIN thank you was about to rewind.

@hulumonkey48 7 жыл бұрын

you are so clutch bless your soul

@umraansyed 7 жыл бұрын

you fine ass woman. thank you

@keinanhomealone 5 жыл бұрын

God is a woman.

@vsheph01 4 жыл бұрын

This is just a spin-off of SWOT.

@EsraBaykal 6 жыл бұрын

He designed the whole strategy framework which all the world business' are using and he just finishes his speech with " we keep learning" Damn it!

@anypis123 3 жыл бұрын

kesinlikle..! :)

@varunaja 3 жыл бұрын

Yes, the most beautiful part............

@DanielRodrigues-bx6lr 3 жыл бұрын

It's the story of humanity!

@petercole2592 3 жыл бұрын

Professor Porter pioneered the management strategy framework Esra. Formal essay writing @esra baykal haha

@johnnymeringues987 5 жыл бұрын

I pour concrete for a living and even I found this extremely useful.

@finakim1121 3 жыл бұрын

I think pouring concert for a living is an admirable job.

@V1N_574 4 ай бұрын

I strongly beilive that you are closer to how the economy is moving based on how bussy your job is. Very differently than 9 to 5 inside a cube. Combining your job experience and latest news you can have a very clear picture of whats to come and do the necesarry arrangements.

@nickferara8945 10 жыл бұрын

I read three of his books. makes you want to put a bullet in your brain from boredom but they teach a lot.

@ojwanggeoffrey2770 4 жыл бұрын

Thought I was alone

@UnfortunateLee 4 жыл бұрын

Why are you putting me off

@ramisantonio1792 4 жыл бұрын

Facts

@KBr-ud6ly 3 жыл бұрын

Welcome to the world of Accounting, Tax & Finance 😅

@chrismatthew8929 Жыл бұрын

Love his books, was literally my bible(s) studying MBA 🤘🏻🤩

@mizanakhtarkhan3846 2 жыл бұрын

I was a 12 year old boy when Michael was interviewed in this video...and now I am in a B school trying to better understand business through this video. Thanks Michael for your timeless sharing of knowledge.

@darkevola7975 10 ай бұрын

Sameeeeee👌👌👌

@nicholaschikoye2402 9 ай бұрын

I was actually three

@nithishlosrawar9342 9 ай бұрын

I was 7 years

@AndrewTheTransformer 5 ай бұрын

By now, you may have graduated? 😊

@mizanakhtarkhan3846 5 ай бұрын

@@AndrewTheTransformer yes indeed!!

@mrphoto776 14 жыл бұрын

I love that I don't have to pay harvard prices to get such great instruction.

@fredoginga456 7 жыл бұрын

So the guy's still alive... damn you genius. The five forces are really useful

@TheEstermann 6 жыл бұрын

Thats what I thought too XD

@jonyjony12345 5 жыл бұрын

Useful ... For exam

@ryanburnett1109 12 жыл бұрын

One of the great minds in Business. Clear, concise and relevant to todays practices.

@kaveerajsahadew9282 3 жыл бұрын

The world will always recognize you and your contributions in this field. You merit the title of Professor.

@KommentarSpaltenKrieger 5 жыл бұрын

Man, knowing to articulate in such a graphic and yet precise manner is a hell of a trait. Makes it really interesting to listen to this.

@shanesweeting1505 5 жыл бұрын

The article being mentioned here is actually the 3 assigned reading in my Strategy course for the Executive MBA program - 10 years after it was published. I think Porter knows his stuff!

@CarloJose0808 8 жыл бұрын

I have his two books - Competitive Strategies and Competitive Advantage... very useful in my life in business. Unfortunately, my senior managers and company owners don't read these types of books, so there goes the business that they manage.

@AJ-nn1kr 5 жыл бұрын

Carlo Jose , I can understand!

@TheRiswinAshraf 5 жыл бұрын

Story of a lot of people's lives. So quit and start your own company Carlo! You can do it!

@eugeniocampos1732 3 жыл бұрын

i just read competitive advantage, should i read competitive strategies? What are the differences, competitive advantages has like an intro from the previous book

@rishisachar6181 Жыл бұрын

You should try to gift them an audio book subscription of these two classics in this time & era, incase you are all still colleagues :)

@jackjack4412 Жыл бұрын

Easier said than done.

@bjbrunetti 13 жыл бұрын

"purpose of strategy is alignment" - love it!

@franciskintu6524 3 жыл бұрын

Michael Porter is a great gift to the business community.

@LocaleerBiz 9 жыл бұрын

This points out that it is important to look at the impact these forces have on margins, which often gets lower scrutiny than direct competitors who impact sales. A business needs to think about all of these forces because they all make an important contribution to profits or, if managed poorly, losses.

@davidwilson1961 8 жыл бұрын

Porter 5 forces tool is the most use tool for industry analysis. Great to have a genuis like Porter in academic.

@sirikondavinay9921 6 жыл бұрын

David Wilson really

@studyfayz566 4 жыл бұрын

*useful tool and academics. Hope u don’t mind me correcting your mistakes

@hautran1030 4 жыл бұрын

How about PEST tool? I think it's useful too. PEST and Poster's five forces model are great for external analysis while product life cycle and BCG matrix are suitable tools for internal analysis.

@numbstuffpeoplesay9309 2 жыл бұрын

@@hautran1030 PESTLE is for macro environment/indirect contact. P's 5 forces is for micro environment/direct contact.

@bcbitchkkv 2 жыл бұрын

@@hautran1030 Check Michael Peng's "The Institutional-Based View as a third leg for a Strategy Tripod" where he suggests looking at.. (1) The surrounding environment(in the form of "institutions": humanly devised constraints - can be political, ) in addition to-- (2) The competition within the Industry and .. (3) The firms own resources & capabilities.. -to form a 'tripod' framework for business strategy. Simply put, BCG & VRIO for internal resources & capabilities (3), 5 Forces for industry competition (2), PEST(EL) for the environmental analysis. I see it as going from 2D to 3D bringing in depth in addition to height and width :)

@samraj8219 5 жыл бұрын

What a profound session on real business world scenarios, times are changing but fundamentals are the key to progression 5 Forces are those factors.

@wasimakhtar6082 3 жыл бұрын

Mr. Porter, after enlightening us advise us that we keep learning. Thank you, Professor.

@marij5589 Жыл бұрын

Gosh, these 2 are so likable and knowledgeable. I love the grounded reality and practicality of the discussion. No fluff or pipe dreams.

@TonyMarino 11 жыл бұрын

Dr. Porter is my absolute professional mentor. Thank you!

@r3bony 14 жыл бұрын

Thanks a lot. Really helps me in my dissertation. Such a great man Prof. Porter.

@cameronwayman8231 10 жыл бұрын

What an incredibly talented and knowledgeable man!

@blufosil11 10 жыл бұрын

The way Mr. Porter described how business rivals could thrive in the industry together made me think of the different species of finches on the Galapagos Islands. Each of the finches has their own different niche that they fulfill on the island, they exist in the same area, but they can thrive on different types of food. Business rivals can do this as well, they exist in the same space as their competitors, but they each offer something unique to the customer allowing them to thrive.

@rickrolls1287 3 жыл бұрын

kzfaq.info/get/bejne/bLpgasqoxp7Jkmw.html ,,

@ChathuraSemaratne4x4 Жыл бұрын

This is absolutely an eye-opener and helped me to streamline my options and evaluate my high-level decisions to guide the company on a profitable path. On the other hand, this was a very good tool to maintain in an organization to navigate the company in the right direction with the external environment challenging the business in a high magnitude, While the PESTEL analysis is highlighting the Macro environment. Thank you, MR. Porter. I'm currently I'm an MBA student at London Metropolitan University and working as a General Manager for a leading FMCG & Manufacturing organization in Sri Lanka. Thank you once again Sir.

@blindsfitvince2443 Күн бұрын

Thank You. I run a small made to measure blinds business and thought diving into creating a strategy didn't really apply to me, but for my continued growth and my position in the industry I can see that it does. Thank you for for putting the video together.

@JM-mt8kp 7 жыл бұрын

A great video which explains the basics of this model quite comprehensively. Although this framework is really robust in many cases, it does fail when a disruptive innovation comes into play. When applying this model a consultant or marketing manager should not only take the current substitutions of the market but should also be aware of disruptive innovations coming from new markets. This mistake has led to many MNE's repelling a certain business area because of their unawareness of developments in other industries.

@kevinbaker07 Жыл бұрын

great insight

@rza139 8 жыл бұрын

Amazing video! Thanks professor.

@Paresh_Bhimani 8 жыл бұрын

The man is an intelligent genius alive today !

@greshanpeter9691 11 жыл бұрын

This is awesome interview and amazed to learned how robust and practical this model over three decades.

@gregoryfoltyn8437 6 жыл бұрын

I could listen to him my whole life

@strategicbusinessitservice2819 6 жыл бұрын

Brilliant video that clarifies application of the five forces in actual business environment.

@shanexy 15 жыл бұрын

this is great i love this and i enjoyed this during my MBA thats when my heart was changed totaly and fell inlove with strategy which made me take the strategy subject futher into my PhD

@nicolespiffi 7 жыл бұрын

Management class!!!

@DuskAndHerEmbrace13 4 жыл бұрын

Absolute badman on the business school scene. Mad respect to this brute.

@XxKINGatLIFExX 6 жыл бұрын

I've written about this guy in so many assignments at Uni, had no idea he would talk like that. What a ledge!

@gilceavarazvan8746 8 ай бұрын

This interview is still given as example at top bussiness programs. I am amazed

@beckyserrano3067 3 жыл бұрын

Practical, Simple, LOGICAL. I got a giggle of his phrase...."" that Airline industries are among the least of profitable industries known to man..." and then adds... "..it's always puzzled me." AND uses them as an example for his forces; brave and brilliant! I like that he acknowledges that there is STILL constant monitoring to take place even after applying the 5 forces. Always be ready to learn more.

@AlignacademyTV Жыл бұрын

Also found his comment about the "least profitable industry known to man" extremely funny...

@bhusals 6 жыл бұрын

Five forces which definitely is acceptable and going to be accepted for longer. This includes basically for the start ups which literally need to understand those forces which makes the business strategy better and competitive and delivers higher value proposition.

@jamesmichaelwalker683 4 жыл бұрын

Love the concept of 5 competitive forces. And I love also the empirical evidence (air industry).

@fortunemutete5734 7 жыл бұрын

Excellent video that clarifies application of the five forces in real business environment.

@arazimsheu1841 2 жыл бұрын

Awesome session with Prof. Micheal E. Porter. Porter's five Forces Model is a generalized model that can be applied to every sector in a micro and macro environment

@jusherechillin 13 жыл бұрын

I like how this video was made, and presented.

@haddagart 5 жыл бұрын

He is the genius who reshaped my concepts about competition analysis.

@MIMLC 11 жыл бұрын

Love this video and the complexities of how competitive forces shape strategy...great job

@chelseafc81 14 жыл бұрын

Thank you for sharing, it helped me with my coursework

@AkashGaikwadshirala 7 жыл бұрын

A nice video of Michael Porter's Five Competitive Forces, it is beneficial to increasing the knowledge about strategy.

@nyanpraterjr1819 4 жыл бұрын

Michael (Harvard Business School), thank you for talking with us about your greatest achievement, Porter's Five Forces, as it relates to each of our businesses plans. 8:50, "Figuring out what your industry is and drawing the right boundaries." Even when we all help build the first Lunar Boom Town on the moon, I'm sure much more than half of us will be using Michael Porter's Five Forces to friendly-compete with each other in a non-zero-sum sort of way. Great-unknown bless you and your loved ones, Michael.

@kerrymoy5104 2 жыл бұрын

Excellent discussion on this topic! Thanks!

@petekdemircioglu Жыл бұрын

Learned this model in 2009. Using it since than. Its great.

@johnudure4782 Ай бұрын

Whoever is Dr. Allen Oyama strategist should listen to this video. I'm here because I was reading IT management courses, the use of IT as a means of competitive advantage in business. Basically, strategic analysis using the SWOT techniques.

@bengygirl 15 жыл бұрын

this video reali helped with completing my strategy assignment. first time i've seen porter too.

@dragonmoon26 2 жыл бұрын

Excellent questions from the interviewer !

@macal2oni 6 жыл бұрын

So stay away from sexy industries. Ok, time to go write my test.

@Automotive100 5 жыл бұрын

Kkkkkkkk

@xyinox 6 жыл бұрын

excellent analysis of the competitive forces !

@modepet 15 жыл бұрын

Very insightful and a nice possibility to see and hear Prof. Porter:-)

@OneGamblor 13 жыл бұрын

Michael Porter is a living legend in business, if only I could be as intelligent as you are.

@zaldabus 10 жыл бұрын

Great video, loved the overall snarkyness and some of the subtle aside commentary. In respect to the 5 competitive forces, I think we would be hard pressed to find anyone who would agree that these 5 factors are critical when it comes to assessing the potential success of a company. What I would like to know is, how can we go about quantifying these forces so that they can be strategically used to develop quantifiable steps towards approaching each force?

@lighthousekeeper205 14 жыл бұрын

Thanks for this...big big help for my course work.

@MegaAcappella 12 жыл бұрын

Stupenda lezione di gestione aziendale e di business!!!

@mohsinameermukhtiarkazmi8014 12 жыл бұрын

One of the excellent models to understand the external market ...!!

@xinyizhou1711 10 жыл бұрын

Ya, totally agree with you ! I have to do my assessments by using his strategies.......

@CFCBluBulb 5 жыл бұрын

My favorite analytical tool. Wow!

@jieziqueen 9 ай бұрын

Potter professor is known for his contribution in business strategy, finally see him here, i really agree with his idea that companies should not battle mindlessly which will lead to zero-sum game, the clever way is to widen the market share of whole industry they are in.

@businessstrategiesinsights8737 6 жыл бұрын

Great info-thanks for sharing!

@effectdirect001 9 ай бұрын

Very apt. This applies perfectly to business till today.

@kaylylyn 6 жыл бұрын

Thanks for sharing this with us!

@oktofnainggolan22 8 жыл бұрын

See this video is fun as i have inspired by his book and masterpiece.. Thanks Professor...

@saadsohail8023 7 жыл бұрын

Good, we take many information to incorporate during our MBA programmed

@odeyinkamotunrayo4789 9 жыл бұрын

Very good explanation

@nandvikar 2 жыл бұрын

Marketing and strategy Guru ..Michael porter

@marcleon1513 5 жыл бұрын

Excellent questions by the interviewer. He gets right to the meat and potatoes.

@TrueTurners 7 жыл бұрын

Reviewing for one of our Masters in Information Assurance courses...great understanding!

@midorelife 13 жыл бұрын

great video-Porter parabens!!!!

@rizalukman7982 3 жыл бұрын

I studied marketing theory and proactive in Australia.One of the most important concept is the porters five forces

@germantempo 11 ай бұрын

What a magnificent video and great explanation

@ariunaa87 9 жыл бұрын

Thank you for your good information.

@mariusvanderleek471 9 жыл бұрын

Classic old school thinking - thanks for the contribution to strategic thinking from an external perspective - use with Adizes Business Life Cycle explanation for another external perspective...

@ahmadpowerdream 10 жыл бұрын

very inspirational and insightful interview so far around topics of strategy, the explanation is very well-articulated. It makes me wanna jump right into a start-up business and play the game! so delighted to see this!

@LalitMoorjani 14 жыл бұрын

This is a good Post, Very helpful to visualize new strategies and understand the drivers of profitibility and competition. Lalith Moorjani Piscataway

@Zafar445 13 жыл бұрын

Very well explained!!

@KBr-ud6ly 3 жыл бұрын

Great insight!

@mehedijahan5078 4 жыл бұрын

Wish to complete a course under his teaching such easy going love and honor from deep of my heart

@jobyvincent6325 4 жыл бұрын

An astonishing interview

@thorthura 11 жыл бұрын

I can believe that I m watching that... just because of my exam. Damn!!!

@valizadintren 15 жыл бұрын

the five forces, explained by porter himself???THIS is awesome....

@Zonsendimoyo 9 жыл бұрын

The intensity of competitive rivalry..For most industries, this is the major determinant of the competitiveness of the industry. Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc. number of competitors,- rate of industry growth,- intermittent industry overcapacity , exit barriers , diversity , informational complexity and asymmetry ,- fixed cost allocation per value added , level of advertising expense

@ahmedal-aqta3952 5 жыл бұрын

Chauncy Jere totally agree

@tahiaalam5291 7 жыл бұрын

This was for my management class :D

@karelltulod3079 2 жыл бұрын

Thank you for your advice sir

@HermosoEcuador 11 жыл бұрын

Learning strategic management and innovation on my final year at uni and OMG. They make Porter's work of 5 forces, generic strategies and generic groups look almost irrelevant. Read: *Strategy Safari (Mintzberg) *Innovator's Dilema (Christensen) *Schumpter's Creative Destruction theory *Dynamics of Strategy (Duncan Robertson) - also happens to be my teacher 'The The dirty little secret of strategy industry is that it doesn't have any theories of strategy creation' - Hammel (1997)

@aselleabigo7451 7 жыл бұрын

Makes sense because most times we just jump into business with excitement and sentiments. Look before you leap.

@IdrisAlHattali 9 жыл бұрын

Brilliant information..😃👍👏

@ashleyrambin5510 Жыл бұрын

lovely video!!

@rorings 14 жыл бұрын

thanks for sharing!

@thomasandrew6748 4 жыл бұрын

Very Interested explanation!

@DonneyLiu 10 жыл бұрын

I have some new understandings for the five forces now!

@NikhilMishraSimplifies 11 жыл бұрын

Intuitive... liked the last few sentences - all rivals can make money!

@lolastaples400 6 жыл бұрын

Competitive forces and strategies shape the very foundation of business principles. The model can be applied to every business environment that I have encountered. The principles are priceless. Students seem to enjoy learning these concepts.

@TheZentopa 14 жыл бұрын

In reference with Porter's five forces include - three forces from 'horizontal' competition as followings; 1.the threat of substitute products. 2.the threat of established rivals. 3.the threat of new entrants. - two forces from 'vertical' competition as followings; 4.the bargaining power of suppliers. 5.and the bargaining power of customers. For his remarks, 'horizontal' is prone to deal with external sources meanwhile the remainder are internal threats combined in terms of 'vertical'.