3. Critically Evaluate the Outside-in Approach to Strategy Formulation.
Introduction
In this modern world, Information Technology forms the integral part of any kind of business. In the 21st century, countries across the globe have come to rely on complex computer networks that form the infrastructural backbone of even the most basic necessities of life, including electric power grids, global finance, food distribution, medical care, clean drinking water, petroleum production, and most types of communication. The protection of such networks, known as cyber security, is among the highest priorities in the civilized world, alongside planning and operations for major contingencies, including antiterrorism and land warfare. (Al-Saud, 2012:75).In Middle East region, the IT industry is dynamically growing along with their Economic growth. Due to this growth, competition has also amplified and hence cyber security plays a significant role here. In recent year there has been an unprecedented volume of malicious code and attacks (Anne Harding. accessed January/10 2012).Hence,the investments made on cyber security has increased, and the estimated IT security business in GCC is over 500 Million a year (Nordic Industries Development, 2012:5). This paper is an analysis of IT security industry’s strategic approach in GCC. It will evaluate the industry through porter Five Force model and other external strategies. Also, this paper will throws light on the inside-out strategy over outside-in strategy
Porter Five Forces Framework
The IT security industry, these days, is a critical area in business sector as well as political sector in the GCC. According to Porter Understanding the competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition (and profitability) over time (2008:80) because the strongest competitive force or forces determine the profitability of an industry and become the most important to strategy formulation (Porter,
In this modern world, Information Technology forms the integral part of any kind of business. In the 21st century, countries across the globe have come to rely on complex computer networks that form the infrastructural backbone of even the most basic necessities of life, including electric power grids, global finance, food distribution, medical care, clean drinking water, petroleum production, and most types of communication. The protection of such networks, known as cyber security, is among the highest priorities in the civilized world, alongside planning and operations for major contingencies, including antiterrorism and land warfare. (Al-Saud, 2012:75).In Middle East region, the IT industry is dynamically growing along with their Economic growth. Due to this growth, competition has also amplified and hence cyber security plays a significant role here. In recent year there has been an unprecedented volume of malicious code and attacks (Anne Harding. accessed January/10 2012).Hence,the investments made on cyber security has increased, and the estimated IT security business in GCC is over 500 Million a year (Nordic Industries Development, 2012:5). This paper is an analysis of IT security industry’s strategic approach in GCC. It will evaluate the industry through porter Five Force model and other external strategies. Also, this paper will throws light on the inside-out strategy over outside-in strategy
Porter Five Forces Framework
The IT security industry, these days, is a critical area in business sector as well as political sector in the GCC. According to Porter Understanding the competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition (and profitability) over time (2008:80) because the strongest competitive force or forces determine the profitability of an industry and become the most important to strategy formulation (Porter,
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