advantages by identifying opportunities and threats and realigning with the business processes.
Porter's approach to industry analysis relates to the task environment of the external environmental scanning. Porter's model deals with the intensity of the competition within the industries, and the basic competitive forces determine the intensity of the competition. The model consists of primarily five forces: (1) threat of new entrants, (2) rivalry among existing firms, (3) threat of substitute products or services, (4) bargaining power of buyers, and (5) bargaining power of suppliers. An additional force, (6) the relative power of other stakeholders is also considered by various management specialists over and above the five forces to suit …show more content…
In contrary to the Porter's five forces, Rumelt (1991) argues that, firm-specific factors are more important to the profitability of a business than industry wide factors. McKiernan (1997) pointed out that Porter's five forces are one of the most useful tools for internal resource analysis of the value chain. Based on analysis of these forces, Porter argues that; an organization can develop a generic competitive strategy of differentiation or cost leadership, capable of delivering superior performance through an appropriate configuration, and coordination of its value chain activities (Porter, 1985a). The task environment of a firm is the environment that directly affects the organization. According to (Daft, 2003, p. 80), the customers, suppliers, competitors, and labor market of a firm belong to the task environment. According to Chapman (2005), SWOT, PESTLE, and Porter's five forces, all utilize the basic framework for reviewing a situation. Boardman (2004) and Johnson (2008) suggest using the Porter's five forces framework for micro external environment of the firm. Porter's five forces can be a major source of developing competitive advantages through management of internal environment and external …show more content…
The choices of strategic intent, strategic positioning, organization restructuring, major investments, and a plethora of other organizational issues to derive sustainable competitive advantages and growth perspectives largely depend on the government. The outcome of the government's policy in general, macroeconomic policies, industrial and energy policy, political outlook, and the specific focus on the industry segment may significantly influence the strategic decisions. The post liberalization era and opening of the market in India, a lot has been discussed in the area of public sector management. In the last two decades, the central public sector enterprises (CPSE) have outperformed in comparison to the private sectors, and provided higher returns on capital (Khanna, 2015). Questions about the relative efficiency and performance of the CPSEs, doubts about their strategic roles, and their impact on growth and stagnation in the economy have dominated the Indian debates for almost two decades (Ghosh, 1998). According to Deloitte India (2011), post liberalization in 1991, the CPSEs have continuously focused their efforts in keeping pace with the competitive environment to ensure economically viable operations and long-term sustainability. In the process, several CPSEs have become self-reliant and transformed into world class
Porter's approach to industry analysis relates to the task environment of the external environmental scanning. Porter's model deals with the intensity of the competition within the industries, and the basic competitive forces determine the intensity of the competition. The model consists of primarily five forces: (1) threat of new entrants, (2) rivalry among existing firms, (3) threat of substitute products or services, (4) bargaining power of buyers, and (5) bargaining power of suppliers. An additional force, (6) the relative power of other stakeholders is also considered by various management specialists over and above the five forces to suit …show more content…
In contrary to the Porter's five forces, Rumelt (1991) argues that, firm-specific factors are more important to the profitability of a business than industry wide factors. McKiernan (1997) pointed out that Porter's five forces are one of the most useful tools for internal resource analysis of the value chain. Based on analysis of these forces, Porter argues that; an organization can develop a generic competitive strategy of differentiation or cost leadership, capable of delivering superior performance through an appropriate configuration, and coordination of its value chain activities (Porter, 1985a). The task environment of a firm is the environment that directly affects the organization. According to (Daft, 2003, p. 80), the customers, suppliers, competitors, and labor market of a firm belong to the task environment. According to Chapman (2005), SWOT, PESTLE, and Porter's five forces, all utilize the basic framework for reviewing a situation. Boardman (2004) and Johnson (2008) suggest using the Porter's five forces framework for micro external environment of the firm. Porter's five forces can be a major source of developing competitive advantages through management of internal environment and external …show more content…
The choices of strategic intent, strategic positioning, organization restructuring, major investments, and a plethora of other organizational issues to derive sustainable competitive advantages and growth perspectives largely depend on the government. The outcome of the government's policy in general, macroeconomic policies, industrial and energy policy, political outlook, and the specific focus on the industry segment may significantly influence the strategic decisions. The post liberalization era and opening of the market in India, a lot has been discussed in the area of public sector management. In the last two decades, the central public sector enterprises (CPSE) have outperformed in comparison to the private sectors, and provided higher returns on capital (Khanna, 2015). Questions about the relative efficiency and performance of the CPSEs, doubts about their strategic roles, and their impact on growth and stagnation in the economy have dominated the Indian debates for almost two decades (Ghosh, 1998). According to Deloitte India (2011), post liberalization in 1991, the CPSEs have continuously focused their efforts in keeping pace with the competitive environment to ensure economically viable operations and long-term sustainability. In the process, several CPSEs have become self-reliant and transformed into world class