BUS600 ProSem: Chapter 9 - Strategy



Porter's Five Force

According to Harvard professor Michael Porter, an industry can be analyzed using a Five-Forces Model. These forces determine how intense competition is within a particular industry. Industries with low intensity, are considered attractive, as they are profitable.  

 

Value Chain - important analysis tool
Inbound Logistics: Vendors selection, net payment term, Shipping method
Operations - employee has the right skill, quality control, training
Outbound Logistics - how do you sell, lead time, delivery
Marketing & Sales
Services

Level of Strategy
Functional Strategy: Can we improve how to do operation?
Business Strategy: How can we beat the competition?
Corporate Strategy: What business should we be in?