Five Forces Model Framework Developed by Professor Michael, E. Porter
Response to Week 2 DQ:
Five Forces Model framework developed by Professor Michael, E. Porter of Harvard Business School in 1979, is a powerful strategic business assessment tool useful in strategic assessment of business position in a volatile competitive market situation to understand where the business competitive power positions and analyze both the current competitive strength and the position which the business is intended to move into to gain profitability while and customer’s desirability’s.
Chapman, A. (2009) established that, “Porter 's Five Forces Model offers advocated opinions which can improve a broad and sophisticated analysis of competitive market positions, as might be used when constructing business assessment strategies, plans, or making investment decisions about a business”
Porter’s reputable five forces model are useful framework to GE Oil&Gas and Energy business operations to determine its competitive power in situations as follow; 1. Threat of Product Substitution: GE operates an aftersales market services to all its customers globally from our Global Sales & Services segments on framework agreements and contractual services agreements basis. The essence of this agreements, are because GE been an Original Equipment Manufacturer (OEM) and considering the technological designs of their original equipment’s, liaisons with customer for partnership for aftersales market follow-on to ensure provision and training of expertise for equipment handling and services. And also, GE operational capabilities in manufacturing their equipment spare parts are GE strategic competitive market position strengths to shade off fair for threat of product substitutes. This strategic model with sophisticated technological innovative designs guarantees GE to gain customer’s unweaving attractiveness.
2. Threat of New Entrants: Among many key competitors of GE, Rolls Royce, Siemens, Solar Energy etc. are GE new market entrants in Oil&Gas and
Five Forces Model framework developed by Professor Michael, E. Porter of Harvard Business School in 1979, is a powerful strategic business assessment tool useful in strategic assessment of business position in a volatile competitive market situation to understand where the business competitive power positions and analyze both the current competitive strength and the position which the business is intended to move into to gain profitability while and customer’s desirability’s.
Chapman, A. (2009) established that, “Porter 's Five Forces Model offers advocated opinions which can improve a broad and sophisticated analysis of competitive market positions, as might be used when constructing business assessment strategies, plans, or making investment decisions about a business”
Porter’s reputable five forces model are useful framework to GE Oil&Gas and Energy business operations to determine its competitive power in situations as follow; 1. Threat of Product Substitution: GE operates an aftersales market services to all its customers globally from our Global Sales & Services segments on framework agreements and contractual services agreements basis. The essence of this agreements, are because GE been an Original Equipment Manufacturer (OEM) and considering the technological designs of their original equipment’s, liaisons with customer for partnership for aftersales market follow-on to ensure provision and training of expertise for equipment handling and services. And also, GE operational capabilities in manufacturing their equipment spare parts are GE strategic competitive market position strengths to shade off fair for threat of product substitutes. This strategic model with sophisticated technological innovative designs guarantees GE to gain customer’s unweaving attractiveness.
2. Threat of New Entrants: Among many key competitors of GE, Rolls Royce, Siemens, Solar Energy etc. are GE new market entrants in Oil&Gas and
References: Achioso, P. (2012) Response to SOMANA Week 4 DQ: The concept of order winners and order qualifiers and why managers find it useful to use these definitions to establish the relative importance of certain performance objectives [Online]. Available from: University of Liverpool/Laureate Online Education Blackboard (Accessed: July 14, 2012). Chapman, A. (2009) Porter 's five forces model: Michael E Porter 's five forces of competitive position model and diagrams [Online]. Available from: http://www.businessballs.com/portersfiveforcesofcompetition.htm (Accessed: July 13, 2012). Chopra, S. & Meindl, P. (2007) Supply chain management: strategy, planning, and operation. 4th Global ed. Englewood Cliffs, NJ: Prentice-Hall. (p.45) July 13, 2012). Manktelow, J. & Carlson, A. (2012) Porter’s Five Forces: Assessing the Balance of Power in a Business Situation [Online]. Available from: http://www.mindtools.com/pages/article/newTMC_08.htm (Accessed: July 13, 2012). Williamson et al. (2004) Strategic Management And Business Analysis. 4th ed. Rougtlede. (pp.77-84).