Business Strategies

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BUSINESS STRATEGIES
Name
Institution Affiliation
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Introduction
This paper addresses three Business strategies that were discovered by various authors.
Basically, the strategies discussed are meant to help in shaping and development of business
organizations. The three strategies include crafting strategy, corporate governance and corporate
diversification and Rethinking and Reinventing Michael Porter’s Five Forces Model.
The study points out major advantages, Disadvantages, Characteristic, and the
contribution of the strategies in the development and promotion of the business world. The
journal shall analyze each strategy one by one evaluating them according to their historical
expression and their objectives as far as business is a concern.
Analysis and Summary
Rethinking and Reinventing Michael Porter’s Five Forces Model
Porter's Five Forces is a model that identifies and analyzes five competitive forces that
shape industries and helps determine an industry's weaknesses and strengths (Dobbs, 2014).
Rethinking and reinventing Michael Porter’s five forces model is meant to propelling strategic
management agenda of business organizations.
Key areas Addressed
Particularly the research is concerned with illustrating major adjustment for Porter’s five
competitive forces model, the importance of the five competitive forces to the strategic
management of the business.
A Survey research strategy is used to understand that over twenty years since Porter’s original
publication, there is little knowledge among mainstream managers in both tops and middle levels

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of Porter’s competitive forces (Dalken, 2014). It brings an understanding of how Michael
Porter’s five competitive forces model can be incorporated with other factors to show the
interdependency of the five competitive forces and other factors. This indicates the effectiveness
and essence of Porter’s five competitive forces to managers of business institutions but not
applied well for the success of the business.
Findings of the research
The five forces identified by Porter are divided into Horizontal forces Threat of
substitutes, the threat of new entrants, competitive rivalry and Vertical forces: Bargaining power
of buyers and bargaining power of customers.
It is evident that Porter’s five Competitive forces have got both advantages and
disadvantages to the managers (Indiatsy et. al 2014). However some of the advantages are
brought in comparison and that is mapping competitive forces horizontally and vertically, these
are illustrated in diagrams by Tony in his journal (figure 14 and figure 15 on page 223 and 224
respectively). This shows the reason as to why some industries are more attractive than others.
Dobbs (2014) argues that Michael Porter’s Five Forces of Competition Theory is used as a tool
to determine the principal competitive influence in a market. Competition determines the
appropriateness of a firm's activities that can contribute to its performance, such as innovations, a
cohesive culture, or good implementation.
Contributions of the journal
The author attempts to explore ways of improving, developing and integrating Porter’s
competitive forces with other factors to create a better solution for managing challenges in