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Micheal Porter Model

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Bartalamju
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« on: August 05, 2009, 05:54:51 am »

As it is known, Five Forces model of Michael Porter is a very elaborate concept for evaluating company's competitive position within the Industry.

My question is whether it is possible to use this model to analyze the industry potential on the international level? Let's say, Italy is lagging in promoting PV cells industry. May I use Porter's Model to evaluate Italian PV cell industry on the international level?

Cheers
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« on: August 05, 2009, 05:54:51 am »

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atari
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« Reply #1 on: August 20, 2009, 07:29:39 pm »

Hi,

Yes, Michael Porter's model can be used for international competitive strategy as well. The core Michael Porter's model includes the main concepts and how they are used (Barriers to entry, Threat of substitutes, Bargaining power of buyers, Bargaining power of suppliers, Rivalry among the existing players), but if you read his book "On Competition" further, take a look at the Part II The Competitiveness of Locations.

Chapter 6 - The Competitive Advantage of Nations
Chapter 7 - Clusters and Competition
Chapter 8 - How Global Companies Win Out
Chapter 9 - Competing Across Locations

These chapters are an extension to the Michael Porter's model well known by the public. My bet is chapters 8 and 9 are especially the parts you are looking for and which have the answers to your question.

By the way, here is a good web page about Michael Porter model: Michael Porter model

Cheers.
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