Its all about the philosophy of management sciences.
Wednesday, April 15, 2009
After Japanese success in all over the globe in automobile (Toyota, Honda) and electronics (National, Sony), world strategy maker thought that what is the undercover force that push Japanese firm at the top of the world business. Many United States military and management thinkers start working on this issue. Hennery Mintzbarg, Peter Drucker, peter Senge, Micheal Porter are the names came in that era. That time also produce the big giants in business world from US market like Microsoft, Apple, GMC, GE, and Dell. Other than these practical examples philosopher did very well jobs. Competitive Strategy is born at that time. Michael E. Porter gave a frame work to analyze organization situation, know the strengths & weaknesses and analyze industry also. Five Forces Model is very well known model for this and detailed emphasis on these market shaping forces in his break through book "Competitive Strategy".
Create entry barrier to new entrants, lower the power of buyers and suppliers and reduce the competitions on direct rivalry and also on substitutes all are elements to making the competition irrelevant.