Before you read more deeply, i just wanna tell to you, that this is my private notes actually. My way to memorize that i ve got from training, so if some day i need this reference, i just search it from my own blog. So, you can read and take it as reference also when you like it. But don’t forget to have some literature as compared as well. You can read it from beginning part for know what the objectives i post this article.
Material that i wanna post i get from Michael Porter theory, btw Porter is an American academic known for his theories on economics, business strategy, and social causes. He is the Bishop William Lawrence University Professor at Harvard Business School, and he was one of the founders of the consulting firm The Monitor Group (now part of Deloitte) and FSG, a social impact consultancy (ref). He said about five forces framework as a tool to analyze the business. In my opinion, this theory is not just we can use it in business area, in other sector like education (or politic, ?) we can use it well also.
For more easier five force that i mean, please see picture bellow
There are they
Industry Rivalry. In business environment, we know that very competitive. Who have service better, cheaper price, more comfortable that can give to customers, will be choosen by customers. When customers have choosed the sellers, will win in the competition. This is a simple condition in the business field.
Threat New Entrance. But what about new entrants, as a step process to monitoring “boxing ring” every day. Every business entity have to read condition any time. Using self evaluation more frequently about own powers and weakness hopefully making a good self awareness also. Not only knowing own self, we can also monitoring new competitors about what they have, what they give to customers, what the new thing. So, don’t be over confidence about big power that we have right now, keep do self evaluation be routines activity in organization.
Bargaining of suppliers. For a goods business, having routines supplier means have continuous relationship. But some times, we know that some big company who have loyal customers with big amount, always have price control to suppliers. I can give sample, if A Company having 1000 customers every day, always order 1000 kg materials every day. which is give more benefit to supplier, bigger than B Company in big comparation. Then there are many suppliers can to do that. This condition will making new chance A Company, to give pressure to supplier. To lowered the price, or they will leaved it and break. So, every company have to think about the possibilities of this.
#continue to next post