Review | January 2008 | hbr.org STRATEGY STRATEGY by Michael E. Porter Peter Crowther SHAPE THE FIVE COMPETITIVE FORCES THAT Editor’s Note: In 1979‚ Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist and associate professor‚ Michael E. Porter. It was his first HBR article‚ and it started a revolution in the strategy field. In subsequent decades‚ Porter has brought his signature economic rigor to the study of competitive strategy for
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1) What is the intended role of each of the institutions and intermediaries discussed in the case for the effective functioning of capital markets? The main role of intermediaries is to fill the information gap between the investors who wish to invest money for higher returns and companies who need financing. Role of Venture Capitalists: The main role of VC is to screen good business ideas from the bad ones‚ invest in a good firm and nurture them until the company exits through a trade sale or
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• The Porter Generic Strategy framework enables an organisation to check the logic of its current competitive strategy and if necessary- the organisation can look for a new strategy • COMPETITIVE ADVANTAGE- the ability for a company to add more value for its customers than its rivals (therefore hold a position of relative advantage)….. The key drivers of competitive advantage are cost leadership and differentiation product • COMPETITIVE STRATEGY- the means by which an organisation seeks to achieve
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Competitive Analysis Porter’s Verdict The Porter framework shows that the airline industry is exceedingly unattractive. Nevertheless‚ JetBlue has quickly attained profitability while maintaining its unusual low cost‚ low-fare‚ and high-quality service strategy. Rivalry is High Consolidation notwithstanding‚ rivalry is high as numerous competitors remain in the airline business. Major airlines such as Delta‚ United and American offer a substantially similar flying experience to the customer
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cell phones‚ computers and other technological innovations has generated economic growth while improving health care and agricultural production in developing nations. But these countries still have a long way to go to catch up to the rest of the world. Rwandan traditional healer‚ Musa Kayairanga Traditional healer Musa Kayairanga of Rwanda uses herbs and ointments to treat his patients‚ and over the years he has learned a lot about natural medicines. Now he is able to share this information
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questions. All questions carry equal marks. 1. Do you think that analysis of foreign environment is essential for the international business? Give your arguments? Discuss the economic and financial environment related to the international business. (5+15) 2. You
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a. MUSIC-IS-US Bank Reconciliation December 31‚ 2015 Balance per bank statement‚ December 31‚ 2015 Add: Deposits in transit not recorded by bank Deduct: Outstanding checks No. 508 No. 511 No. 521 Adjusted cash balance $ $ Balance per depositor ’s records‚ December 31‚ 2015 Deduct: Bank service charge NSF check from Iggy Smarts Adjusted cash balance (as above) $ $ 46‚975 16‚500 63‚475 $ 21‚000 42‚475 $ 45‚000 $ 2‚525 42‚475 5‚500 7‚500 8‚000 25 2‚500 General Journal a. b. c. d
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Porter Analysis “Starbucks Case” I. Threats of Competitors Now a day‚ Starbucks is very well known in the market‚ so with this competitors are arising rampantly. Small coffee retail outlets are growing rapidly in America and it seems to be multiplying. Based on the study of the Ivey Management‚ there are more than 3485 competitors in the market. All are coffee retailing or even café or with carts. In US‚ they have low barrier to entry in the retail specialty coffee market. This has resulted
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Porter Five Forces – Degree of Competition The UK banking industry is made up of three distinct types of competition which include the following (OFT‚ 2010): · Retail banks - Accept deposits and use these funds to make loans as well as offering other financial products to consumers and firms. Lloyds Banking Group‚ Virgin Money‚ Metro Bank‚ · Universal banks which not only offer retail banking services but also offer wholesale and investment banking services. For example: Barclays‚ HSBC
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Porter analysis of Zara Zara fashion chain‚ with 546 stores in 30 countries today from which 340 are outside Spain- and 2914‚3 millions of total sales in 2002‚ is undoubtedly the group’s locomotive (Inditex‚ 2003). In 2002 it represented 33% of the group’s total stores‚ accounted for 72% of the group’s total sales and contributed to the holding’s total profits for 540.4 millions (Inditex FY2002 Results Presentation‚ 2003). Moreover‚ Zara with 75-90 new stores within 2003 takes the lion’s share
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