Michael Porter is recognized as one of the top authorities on corporate strategy and business competition. The historical review of strategic management clearly shows that Porter’s research has bridged up two general paradigms (before and after the 1980s) thus helping both researchers and practitioners to better understand unanticipated global changes. His two generic strategies: costs and diversification, the two interdependent strategic options, are key in the context of the competitiveness of orthodox microeconomic theory. This is where Porter went further, constructing a popular value chain concept that provides the ability to disaggregate the key activities of business process in creating products and services in terms of cost analysis and value creation.
This book is a collection of seven interconnected chapters that provides a coherent understanding of Michael Porter’s contribution to the field of strategic management. It addresses key changes and challenges in the global business environment. The value chain concept has become highly applicable in both theory and practice. In the book, the authors offer an original interpretation of the Porters’ research on strategic management in order to unravel or simplify his key theoretical concepts. It will be of interest to researchers, academics, practitioners, and students in the fields of strategic management and international business.
Author(s): Jovo Ateljević, Dženan Kulović, Filip Đoković, Mirza Bavčić
Series: Routledge Research in Strategic Management
Publisher: Routledge
Year: 2023
Language: English
Pages: 194
City: New York
Cover
Half Title
Series Page
Title Page
Copyright Page
Contents
Tables
Figures
Preface
1. Shifting Paradigms in Business Competition
Introduction and context
The evolution of economic thought: From cost control to the affirmation of the knowledge economy
New economic paradigms
Conceptual and practical understanding of the purpose of the company
Purpose and academic discourse
The purpose and success of the company
Measuring business success
Balancing business models and company strategy
Notes
References
2. Porter's Contribution to Strategic Management
The paradoxical foundation of strategic management
Theoretical framework of strategic management
Porter's contribution to the development of the new paradigm
The transition of the course business policy into the course business strategy
Porter's theoretical ground for developing this discipline
Criticism of Porter's contribution to strategic management
Note
References
3. Competitive Advantage
Creating sustainable competitive advantage
Business strategy and operational effectiveness
Economic and social benefits
The approaches to creating and sustaining competitive advantage
The perspectives of the structural approach
The perspectives of the resource approach
Porter's critic of the resource approach
Notes
References
4. Environmental Analysis: Porter's Five Competitive Forces Concept
Strategic environmental analysis
Constructs of environmental strategic analysis
Industry analysis
Entry barriers - the danger of newcomers
The negotiation power of suppliers - the danger of suppliers
The negotiation power of buyers - the danger of buyers
Substitute pressure - the danger of substitutes
Competition intensity - the rivalry of competitors
Strategic group analysis
Competitors analysis from the environmental perspective
Notes
References
5. Company Analysis: Porter's Value Chain Concept
Strategic company analysis
Constructs of strategic company analysis
Value chain analysis
Low cost
Differentiation
Strategic activities analysis
Competitors analysis from the company perspective
Notes
References
6. The Company and Environmental Interaction: Porter's Concept of Generic Strategies
The company and environment interaction
Business strategy - the manner of interaction between the company and the environment
Porter's generic strategies
Competitive advantage
Competitive volume
Competitive strategies
Strategists
The planning components
The action component
The interaction between the planning and the action component
The sustainability of generic strategies
The sustainability of overall cost leadership
The sustainability of differentiation
The sustainability of focus
Upgrading Porter's generic strategies concept
The stuck-in-the-middle position
Following more than one generic strategy
Notes
References
7. Porter's New View on Competitive Advantage: Green and Competitive
Reasons "for" and "against" organisational involvement in social activities
Levels of corporate social responsibility
"How green your business is"
Porter's modified matrix of business strategies
Digital transformation strategy
Notes
References
Index
