Michael Porter’s 5 forces of strategy

By outlining 5 forces that shape industry competition, Michael Porter was pointing out that defining the strategy of a business based on its positioning is no easy thing — and is often overlooked by companies. 

He indicates that the forces that there are outside forces that influence competition – not limited to simple  x versus y.
They are: the bargaining power of suppliers [who offer specific crucial know-how, for example]; the bargaining power of buyers [who can drive prices down by threatening to leave]; the threat of substitute products/services and the threat of new entrants.
The important lesson is not wishful thinking that no one will try to imitate what you do. It’s making sure you know focus on the uniqueness of what you do. Focus on the real VALUE that your product/service adds.
A company without a strategy cannot work. If a company does not have a strategy and things are “working out” now, it’s because they were lucky enough to fall into a strategy but it’s not likely to last.
Also, equally important, is keeping in mind that strategy is also about what NOT to do. What NOT to focus on. What are the trade-offs? Sticking to your core strategy means not going after every single opportunity. Choosing what markets to invest in and how to best add value is the way to go. 

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