The Five Competitive Forces That Shape Strategy

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  • Опубликовано: 29 июн 2008
  • 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.

Комментарии • 652

  • @user-oc7uu8ss1x
    @user-oc7uu8ss1x 4 года назад +1886

    Who is also here because of uni?

    • @studyfayz566
      @studyfayz566 4 года назад +24

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

    • @PeterKallio
      @PeterKallio 4 года назад +6

      @@studyfayz566 Same here :)

    • @MrLOLSager
      @MrLOLSager 4 года назад +10

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

    • @Exx777
      @Exx777 4 года назад +17

      im here bcs of corona

    • @monicarachel6825
      @monicarachel6825 4 года назад +2

      me

  • @EsraBaykal
    @EsraBaykal 6 лет назад +224

    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
      @anypis123 3 года назад

      kesinlikle..! :)

    • @varunaja
      @varunaja 3 года назад

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

    • @DanielRodrigues-bx6lr
      @DanielRodrigues-bx6lr 3 года назад

      It's the story of humanity!

    • @petercole2592
      @petercole2592 3 года назад

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

  • @mariselidiazmarin2160
    @mariselidiazmarin2160 8 лет назад +819

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

  • @johnnymeringues987
    @johnnymeringues987 5 лет назад +172

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

    • @finakim1121
      @finakim1121 3 года назад +20

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

    • @V1N_574
      @V1N_574 4 месяца назад

      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
    @nickferara8945 10 лет назад +311

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

    • @ojwanggeoffrey2770
      @ojwanggeoffrey2770 4 года назад +8

      Thought I was alone

    • @NickkGerr
      @NickkGerr 4 года назад +5

      Why are you putting me off

    • @ramisantonio1792
      @ramisantonio1792 4 года назад +3

      Facts

    • @KBr-ud6ly
      @KBr-ud6ly 3 года назад +6

      Welcome to the world of Accounting, Tax & Finance 😅

    • @chrismatthew8929
      @chrismatthew8929 Год назад

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

  • @mizanakhtarkhan3846
    @mizanakhtarkhan3846 2 года назад +179

    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.

  • @ryanburnett1109
    @ryanburnett1109 12 лет назад +32

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

  • @kaveerajsahadew9282
    @kaveerajsahadew9282 3 года назад +10

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

  • @KommentarSpaltenKrieger
    @KommentarSpaltenKrieger 5 лет назад +6

    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.

  • @samraj8219
    @samraj8219 5 лет назад +3

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

  • @marij5589
    @marij5589 Год назад

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

  • @ChathuraSemaratne4x4
    @ChathuraSemaratne4x4 Год назад +1

    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.

  • @mrphoto776
    @mrphoto776 14 лет назад +172

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

  • @shanesweeting1505
    @shanesweeting1505 5 лет назад +12

    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!

  • @wasimakhtar6082
    @wasimakhtar6082 3 года назад +1

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

  • @fredoginga456
    @fredoginga456 7 лет назад +205

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

  • @franciskintu6524
    @franciskintu6524 3 года назад +4

    Michael Porter is a great gift to the business community.

  • @LocaleerBiz
    @LocaleerBiz 9 лет назад +11

    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.

  • @cameronwayman8231
    @cameronwayman8231 10 лет назад +5

    What an incredibly talented and knowledgeable man!

  • @TonyMarino
    @TonyMarino 11 лет назад +4

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

  • @JM-mt8kp
    @JM-mt8kp 7 лет назад +21

    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.

  • @r3bony
    @r3bony 14 лет назад +2

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

  • @strategicbusinessitservice2819
    @strategicbusinessitservice2819 6 лет назад +1

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

  • @bjbrunetti
    @bjbrunetti 13 лет назад +14

    "purpose of strategy is alignment" - love it!

  • @greshanpeter9691
    @greshanpeter9691 11 лет назад +1

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

  • @AkashGaikwadshirala
    @AkashGaikwadshirala 7 лет назад +1

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

  • @beckyserrano3067
    @beckyserrano3067 3 года назад +2

    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
      @AlignacademyTV Год назад +1

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

  • @fortunemutete5734
    @fortunemutete5734 7 лет назад +4

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

  • @rza139
    @rza139 8 лет назад +4

    Amazing video! Thanks professor.

  • @CarloJose0808
    @CarloJose0808 8 лет назад +90

    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
      @AJ-nn1kr 5 лет назад +2

      Carlo Jose , I can understand!

    • @TheRiswinAshraf
      @TheRiswinAshraf 5 лет назад +11

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

    • @eugeniocampos1732
      @eugeniocampos1732 3 года назад +1

      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
      @rishisachar6181 Год назад +1

      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
      @jackjack4412 Год назад

      Easier said than done.

  • @arazimsheu1841
    @arazimsheu1841 2 года назад +2

    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

  • @gilceavarazvan8746
    @gilceavarazvan8746 8 месяцев назад

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

  • @shanexy
    @shanexy 15 лет назад +5

    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

  • @Paresh_Bhimani
    @Paresh_Bhimani 8 лет назад +11

    The man is an intelligent genius alive today !

  • @nyanpraterjr1819
    @nyanpraterjr1819 4 года назад +10

    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.

  • @blufosil11
    @blufosil11 10 лет назад +10

    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
      @rickrolls1287 3 года назад

      ruclips.net/video/6T07gwa8eb8/видео.html ,,

  • @davidwilson1961
    @davidwilson1961 8 лет назад +86

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

    • @sirikondavinay9921
      @sirikondavinay9921 6 лет назад

      David Wilson really

    • @studyfayz566
      @studyfayz566 4 года назад +1

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

    • @hautran1030
      @hautran1030 4 года назад +2

      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
      @numbstuffpeoplesay9309 2 года назад +2

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

    • @bcbitchkkv
      @bcbitchkkv 2 года назад

      @@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 :)

  • @jamesmichaelwalker683
    @jamesmichaelwalker683 4 года назад +1

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

  • @XxKINGatLIFExX
    @XxKINGatLIFExX 6 лет назад

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

  • @DuskAndHerEmbrace13
    @DuskAndHerEmbrace13 4 года назад +1

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

  • @haddagart
    @haddagart 5 лет назад +1

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

  • @jusherechillin
    @jusherechillin 13 лет назад +1

    I like how this video was made, and presented.

  • @bhusals
    @bhusals 6 лет назад +4

    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.

  • @MIMLC
    @MIMLC 11 лет назад +1

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

  • @zaldabus
    @zaldabus 10 лет назад +9

    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?

  • @gregoryfoltyn8437
    @gregoryfoltyn8437 6 лет назад +6

    I could listen to him my whole life

  • @chelseafc81
    @chelseafc81 14 лет назад +2

    Thank you for sharing, it helped me with my coursework

  • @LalitMoorjani
    @LalitMoorjani 14 лет назад +1

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

  • @dragonmoon26
    @dragonmoon26 2 года назад

    Excellent questions from the interviewer !

  • @xyinox
    @xyinox 6 лет назад +1

    excellent analysis of the competitive forces !

  • @MegaAcappella
    @MegaAcappella 12 лет назад

    Stupenda lezione di gestione aziendale e di business!!!

  • @kerrymoy5104
    @kerrymoy5104 2 года назад

    Excellent discussion on this topic! Thanks!

  • @bengygirl
    @bengygirl 15 лет назад

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

  • @jieziqueen
    @jieziqueen 9 месяцев назад

    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.

  • @petekdemircioglu
    @petekdemircioglu Год назад +1

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

  • @modepet
    @modepet 15 лет назад +1

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

  • @oktofnainggolan22
    @oktofnainggolan22 8 лет назад +1

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

  • @TrueTurners
    @TrueTurners 7 лет назад

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

  • @OneGamblor
    @OneGamblor 13 лет назад +1

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

  • @lolastaples400
    @lolastaples400 6 лет назад +1

    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.

  • @effectdirect001
    @effectdirect001 8 месяцев назад

    Very apt. This applies perfectly to business till today.

  • @marcleon1513
    @marcleon1513 5 лет назад +1

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

  • @mohsinameermukhtiarkazmi8014
    @mohsinameermukhtiarkazmi8014 12 лет назад

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

  • @Zonsendimoyo
    @Zonsendimoyo 9 лет назад +3

    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

  • @nandvikar
    @nandvikar 2 года назад

    Marketing and strategy Guru ..Michael porter

  • @ahmadpowerdream
    @ahmadpowerdream 10 лет назад +3

    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!

  • @lighthousekeeper205
    @lighthousekeeper205 14 лет назад +1

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

  • @mariusvanderleek471
    @mariusvanderleek471 9 лет назад

    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...

  • @rizalukman7982
    @rizalukman7982 3 года назад +1

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

  • @germantempo
    @germantempo 10 месяцев назад

    What a magnificent video and great explanation

  • @kaylylyn
    @kaylylyn 6 лет назад +2

    Thanks for sharing this with us!

  • @jobyvincent6325
    @jobyvincent6325 4 года назад

    An astonishing interview

  • @mehedijahan5078
    @mehedijahan5078 4 года назад +6

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

  • @midorelife
    @midorelife 13 лет назад

    great video-Porter parabens!!!!

  • @saadsohail8023
    @saadsohail8023 7 лет назад +2

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

  • @businessstrategiesinsights8737
    @businessstrategiesinsights8737 6 лет назад +1

    Great info-thanks for sharing!

  • @odeyinkamotunrayo4789
    @odeyinkamotunrayo4789 9 лет назад +2

    Very good explanation

  • @TheCompaniesExpert
    @TheCompaniesExpert 6 лет назад

    Nice video on strategy

  • @ashleyrambin5510
    @ashleyrambin5510 Год назад +1

    lovely video!!

  • @johnudure4782
    @johnudure4782 Месяц назад

    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.

  • @CFCBluBulb
    @CFCBluBulb 5 лет назад

    My favorite analytical tool. Wow!

  • @valizadintren
    @valizadintren 15 лет назад +2

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

  • @wajahat87
    @wajahat87 15 лет назад

    Must say that..that's the best video i watched in last 3 years...many thx to Neil connan@rgu

  • @KBr-ud6ly
    @KBr-ud6ly 3 года назад +1

    Great insight!

  • @Zafar445
    @Zafar445 13 лет назад +1

    Very well explained!!

  • @boscohaule1543
    @boscohaule1543 3 года назад +5

    The Five Competitive Forces are key to understand the competition around any business. An understanding of actions done by competitors is an opportunity for the organization to strategize better! The Porter's Model is the right tool to help business leaders to scan the business environment (both external and internal) and respond accordingly

  • @IdrisAlHattali
    @IdrisAlHattali 9 лет назад

    Brilliant information..😃👍👏

  • @ariunaa87
    @ariunaa87 9 лет назад

    Thank you for your good information.

  • @xinyizhou1711
    @xinyizhou1711 10 лет назад +1

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

  • @jeannettefigueroa5768
    @jeannettefigueroa5768 5 лет назад +1

    An important model to apply. Thanks for the interview.

  • @NikhilMishraSimplifies
    @NikhilMishraSimplifies 11 лет назад

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

  • @HermosoEcuador
    @HermosoEcuador 11 лет назад +2

    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)

  • @thomasandrew6748
    @thomasandrew6748 4 года назад

    Very Interested explanation!

  • @tahiaalam5291
    @tahiaalam5291 7 лет назад +3

    This was for my management class :D

  • @karelltulod3079
    @karelltulod3079 2 года назад

    Thank you for your advice sir

  • @DonneyLiu
    @DonneyLiu 10 лет назад

    I have some new understandings for the five forces now!

  • @FieTraxxBeatz
    @FieTraxxBeatz 15 лет назад

    Thanks to Mike Porter and his Forces Model....i am now stuck with a mind boggling paper to write that is due next week. I have no clue where to start. Should i use Porter's 5 Forces to Analyze the cruise industry or food and beverage industry????

  • @TheEstermann
    @TheEstermann 6 лет назад

    Pretty good interview. Old but pretty good.

  • @aselleabigo7451
    @aselleabigo7451 7 лет назад +1

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

  • @LorenzoMarkovian
    @LorenzoMarkovian 9 лет назад +2

    Can you please share a link to his article that he refers to in the interview. Thanks