Essay on strategy Example | Topics and Well Written Essays - 1250 words

On strategy - Essay Example es have been developed and researches have been conducted to explore the socioeconomic phenomena on the concrete foundations of in-depth observation and existing realities. The global corporate culture has been adopting and following the Five Factors Model presented by famous theorist and strategic analyst Michael E. Porter in 1980. The theorist submits to state that since the contemporary era experiences the state of perfect competition in the wake of tremendous technological advancement, five-factor model is vehemently supportive in developing their strategic schemes and revising them according to the fast changing market situation. â€Å"The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.† (learnmarketing.net) Porter has described the following five factors as the part of his strategic model: Porter views these five factors to be regulating the future of a product as well as the organisation producing the product. Porter declares competitive rivalry between the firms as the most dynamic factor, which explains that the easier the entry in a business or industry, the higher the level of competition in that business area. Since such products are similar to one another in respect of characteristics, formulae and even outlook, the probabilities of their availability are also almost one and the same. Consequently, it is also flexible for the customers and consumers to switch from one product to its rival brand. For example, KFC is offering almost the same fast food items as being produced by McDonalds; the same is the case with Coca-Cola, RC Cola and Pepsi, where only few people are brand conscious and take these drinks as the substitute of one another. Thus, consumers take advantage of such a state of affairs, and the companies have to devise innovative plans and strategies i n order to combat with the situation of perfect competition. Porter also views