MANAGEMENT

Michael Porter's Contribution to the Field of Strategic Management



Abstract

The assignment focuses into the literature and particularly analyzes the inputs of MEP. This paper will critically analyze the different theories and concept of strategic management in light of the real world scenario. It'll not be restricted just to the contributions of MEP. Instead, it will be focusing on comparing other theories evolved over the period of time and continuous change in business environment and practices. The contribution of the Porter in the field of strategic management can never be ignored. He gave a new life to the management strategies and the formulated the model in order to achieve maximum success in any field of the market.

Table of contents

Abstractii

Introduction5

Background of the Topic5

Discussion6

Contributions of the Porter in Strategic Management6

Competitive Advantage6

Generic Strategies by Porter8

1.Cost Leadership Strategy9

2.Differentiation Strategy10

3.Focus Strategy11

Porters 5 Force Model11

The Threat of Entry of New Competitors (New Entrants)12

The Threat of Substitutes13

The Bargaining Power of Buyers13

The Bargaining Power of Suppliers13

The Degree of Rivalry Between Existing Competitors14

Porter's Value Chain14

Inbound Logistics15

Outbound Logistics15

Operations15

Marketing and Sales15

Services16

Critical Analysis16

Conclusion19

Michael Porter's Contribution to the Field of Strategic Management

Introduction

To start with strategic management, this term is more often leads one into the work of Porter. Strategic Management has been bounded by his framework, theories and concepts which have been and are considered fundamental. It is the field of mgt where the top mgt intends and take initiatives on owner's behalf to formulate strategies for the business. To achieve organizational goals, missions and vision. An ongoing process of evaluating and controlling the business and its environment in order to keep an edge in the industry is discussed (Cartwright, 2002). Strategic management depends upon the size of the organization and the proximity of its industry environment. Large MNC's must formulate a more structured model due to its size and importance of taking stakeholders onboard as well in strategy making.

Background of the Topic

To know about the true contribution of Porter and its effect on business environment there is a need to analyze the era of 1950s and 1960s. This is called the sales era. Where companies were involved in fast producing products and they won't face much trouble in selling them a good profit. They just focused on selling the products and the concept is known today as sales orientation period. It was 1970s which saw the surge of marketing oriented firms, many writers at Harvard came up with arguments that sale orientation is not the answer to the owner's woes of more profit and sales. The concept of first knowing the needs of customer and then producing, fulfilling their needs was evolved. Thus customer was considered the king and has been the driving force behind all the strategic decision making process in an organization. This was the era where Japanese companies had their due share of success by implying the latest concepts of marketing. They were the biggest competitors to the European companies.

Discussion

Contributions of the Porter in Strategic Management

The western business elite recognized the need for change in the management ...