Integrating Porters Designed Of Five Forces Framework Essay

710 Words Aug 20th, 2015 3 Pages
Utilising porters designed of five forces framework in business, a creative company strategist can be able to spot potential openings for an industry with a forecast of good future before this good future is reflected in the price of acquisition. For example a firm strategy can be viewed as constructing a defence wall against the competitive forces or trying to attain a position in the industry where the rivalry forces are weakest. Consider as an example the position of Paccar (a global technology leader in design, manufacture and customer support of high quality premium trucks) in the market for heavy trucks. Considering the structurally challenging nature of the heavy-truck industry, many buyers operates large fleets or are large leasing companies with both the leverage and the encouragement to bring down the price of some of their largest purchases. As capital intensify, it increases the strength of rivalry, especially during the recurring cyclical decline in business or production capacity (Porter E. M., 2008 pg. 89)
Aim of strategy:
Theories and proposals brought forward by schoolers, combined with modern researches has shown that the primary aim of any action taken by an organisational in creating a strategy is to achieve competitive advantage and create value for the organisation and its stakeholders (Hoskisson, 2007). All firms want to be better than their competitors by adding values to their customers and in turn make profit to move their investment forward while…

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