Michael Porter is an American management scholar who is famous for advocating
five forces analysis
and value chains. Michael Porter is a leading expert on competitive strategy, and his representative books include “Competitive Strategy” and “Strategies for Competitive Advantage.”
Five Forces Analysis is a method used to micro-analyze the business environment, and is based on two external factors: “threat of new entrants” and “threat of substitute products,” as well as “industry competition” and “bargaining power of sellers.” We conduct analysis based on three internal factors: ” and “buyer’s bargaining power.”
Value chain is a method to identify process bottlenecks and improve profitability by visualizing the series of steps in which a company provides value to customers and analyzing each process.
Five forces analysis and value chain are both classic
frameworks
that are still used in many settings.
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