Tag - porter

October 2012

June 2012

January 2012

Porter’s National Diamond – Competitive Advantage of Nations!!!

Porter has an amazing ability to explain complex phenomena in a crystal clear way. The National Diamond framework frames the attributes which explain the competitive advantage of Nations :

Porter National Diamond, MBA, Management Frameworks, Competitive Advantage

1. Factor Conditions. The nation’s position in fac- tors of production, such as skilled labor or infra- structure, necessary to compete in a given industry.

2. Demand Conditions. The nature of home-mar- ket demand for the industry’s product or service.

3. Related and Supporting Industries. The pres- ence or absence in the nation of supplier indus- tries and other related industries that are internationally competitive.

4. Firm Strategy, Structure, and Rivalry. The conditions in the nation governing how companies are created, organized, and managed, as well as the nature of domestic rivalry.

December 2011

September 2011

Porter’s three Generic Business strategies !!!!

If you are in a Business school, invariably you will get references to Porter and theories on Business Strategies. It is Interesting that many theories have come after Porter set out his strategies. However, the simplicity and the power his theories have captured the imagination of Businesses the world over.
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So, presenting here the three business strategies of Porter and typical Organizational Characteristics :

Strategy 1 —>>> Overall Cost Leadership

•Sustained capital investment and access to capital
•Intense supervision of labor
•Tight cost control requiring frequent, detailed control reports
•Low-cost distribution system
•Structured organization and responsibilities
& Products designed for ease in manufacture
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Strategy 2 —>>> Differentiation
•Strong marketing abilities
•Product engineering
•Strong capability in basic research
•Corporate reputation for quality or technological leadership
•Amenities to attract highly skilled labor, scientists, or creative people.
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Strategy 3 —->>>> Focus
•Combination of cost-leadership & differentiation strategy directed at a particular strategic target.
Well that’s that!!!!!! His Five forces… I will put up some other time.