The first video I am going to summarize from class is the five competitive forces video. Michael Porter states in the video that the five forces that affect strategy are buyers, suppliers, new entrants, existing competitors and substitute products. There are industries where the five forces may be huge or benign, but can be used in any industries. It shows the underline structure in the industry. These factors are what affect the profitability in your industry. The threat of new entrants affects prices and costs, as well as ROI (Rate of Investment). For Suppliers, they offer differentiated products and can charge higher prices. The threat of buyers is that they have negotiating power. They can demand more quality or lower prices, etc. The next
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Many competitors focus on price competition and trying to meet the same buyer needs. Having knowledge of all these forces can help keep a solid structure within your industry. In one of the examples in the video, he considers a commercial aviation situation. The five forces are strong so it makes it one of the least profitable industries. They discuss these forces in this example. The rivals strive on price. The customers search for the best deal for themselves. The suppliers bargain the airlines’ profits. The substitutes can include driving your car or getting on the train or others.
Gary Hamel- Management Innovation
The second video I will be summarizing is Management Innovation by Gary Hamel. Management innovation is a withdrawal from traditional management practices. It can be …show more content…
In this video he talks about structuring organizations for people and the future. He discusses all the big inventions over the past 100 years and states that the biggest invention was management. Management helps planning and organizing in a business. He claims that today we need to help reinvent this because we need new solutions for the challenges of today. He then goes on to talk about the tools for modern management during the early 1900s. These included pay for performance, capital budgeting, task design, divisionalization and brand management. The amount of innovation has slowed down over the years and the way we manage has stayed rather the same. He claims that the first challenge we have is that we are the first generation that has to deal with a faster rate of change. Things he lists that are changing at an exponential pace include CO2 emissions, Internet connections, data storage, mobile devices connected to the web and genome sequencing. The second challenge he brings up is hyper competition. There used to be obstacles to help from creative destruction. When there are no barriers the companies have to defend its margins. To help with this, companies need to be more creative, more innovative. The third challenge he states is that’s its harder to make an organization more unique and have new ideas. The question is, how fast can you create new knowledge? He
Many competitors focus on price competition and trying to meet the same buyer needs. Having knowledge of all these forces can help keep a solid structure within your industry. In one of the examples in the video, he considers a commercial aviation situation. The five forces are strong so it makes it one of the least profitable industries. They discuss these forces in this example. The rivals strive on price. The customers search for the best deal for themselves. The suppliers bargain the airlines’ profits. The substitutes can include driving your car or getting on the train or others.
Gary Hamel- Management Innovation
The second video I will be summarizing is Management Innovation by Gary Hamel. Management innovation is a withdrawal from traditional management practices. It can be …show more content…
In this video he talks about structuring organizations for people and the future. He discusses all the big inventions over the past 100 years and states that the biggest invention was management. Management helps planning and organizing in a business. He claims that today we need to help reinvent this because we need new solutions for the challenges of today. He then goes on to talk about the tools for modern management during the early 1900s. These included pay for performance, capital budgeting, task design, divisionalization and brand management. The amount of innovation has slowed down over the years and the way we manage has stayed rather the same. He claims that the first challenge we have is that we are the first generation that has to deal with a faster rate of change. Things he lists that are changing at an exponential pace include CO2 emissions, Internet connections, data storage, mobile devices connected to the web and genome sequencing. The second challenge he brings up is hyper competition. There used to be obstacles to help from creative destruction. When there are no barriers the companies have to defend its margins. To help with this, companies need to be more creative, more innovative. The third challenge he states is that’s its harder to make an organization more unique and have new ideas. The question is, how fast can you create new knowledge? He