The Five Competitive Forces That Shape Strategy

[MTCoblivsicas12345]

I think that a market with the highest risk makes the most profitabillity for example the airlines market isnt huge high risk compared to soft drinks or technology. The airlines have enabled things let Jet2.com or easyjet.com to flourish whereas its more difficult in a soft drink market if its not part of the coca-cola company then your going to be in for a tough ride. However, the soft drink market makes more profit per company often its a risk-reward ratio that companies should look at aswell

[r0cksztar]

Awesome video. Does anybody know what article it is we are talking about, and where to find it? 

[shironekonekoneko]

If I had great ability, I could go to Harvard University. At the very least, I wish I could speak English perfectly. I envy American students. From Japan.

[cburn455]

Strategic Management Exam in 5 hours - i'm going to wreck the place lol !!!!!!! ;)

Brilliant Video

[MTCoblivsicas12345]

@cburn455 good luck i got an assignment due in 3 days and this video really helped :)

[msalamanca7]

@cburn455 Hey buddy, got an exam tomorrow, how did it go for u?

[MegaAcappella]

Stupenda lezione di gestione aziendale e di business!!!

[pokapada]

you are a great guy:-)) thanx for your innovation

[murdock2k8]

strategy and management exam in 3 and a half hours.........

[trippermechanic]

hareketlere bak ya . adam okumuş hacuu :D

[rorregodelrio]

So basic...

[MiZaNtHr0pE]

Bussiness Administration Final Exam, prepare to be humiliated tomorrow ;)

[10milesnotwide]

This guy is a peice of shit! go jump off a bridge! I created those 5 forces! you just stole it from me! Stupid wizard!

[wigglywig1]

@10milesnotwide nice spelling...

[lallasouka]

please i need this video with the french translation, can someone help me , thank you

[msdevnz]

Aviation Strategy exam tomorrow :D

[TheGrilledWatermelon]

Marketing management exam prepare to be my bitch.

[CreditRatings101]

Just studying for an exam and came across this, making a lot of stuff MUCH easier to understand - thanks so much.

[13SM13]

Anyone else here from Laurier?

[viciousllamas]

@13SM13 Last minute studying.

[13SM13]

@viciousllamas I'm not going to be sleeping tonight...

[gtagino]

DAMN YOU BU 111

[brosequist]

Come see Michael Porter at the Babson Entrepreneurship Forum on the 13th of November!

Stay updated via Twitter: @BabsonForum

[ItsNanz]

Thank you Mr Porter. I now have a better understanding of the forces. Now its time for me to get down to work.

[wacastervids]

PORTER IS WEARING SO MUCH MAKEUP.

[coldpapers]

392.. huh？

[stina2711]

2:10 good example

[LuigiFan1305]

CSUS GM 170?

[Belloumar1]

I'm gonna pass my test. *moonwalking*

[cpisolution]

Thank you

[Dameka247]

I wish I would have viewed this interview before I took my quiz in my business class.

[jusherechillin]

I like how this video was made, and presented.

[jusherechillin]

You cant know the rewards of a venture before you explore it. so, why cant they just look at it, and see it's not what they liked?

[Zafar445]

Very well explained!!

[123paco2008]

Porter was in Peru in 2010.

[gogoasacenusie]

Should a branding plan be separated from the marketing plan ?

[imseksie]

"Did he just say 'sexy business'?" Anyhow thanks for explaining.

[2tokemayhem]

navid <3 farshad 4eva

[casperghosty]

If you close your eyes you'd guess this guy is in his twenties.

[carsick77]

<3 Porter!

[wancestyle]

genius

[LeBadman]

10:25 "from the, from the, fro-fro-from"

[imseksie]

@LeBadman 10:36 Of-f-f of-f-f of- offff. You can't make fun of somebody's stutter dude. Not cool!

[LeBadman]

@imseksie My point is that he was being distracting. I was trying to learn this stuff for my exam corporate management and I was losing concentration on this subject because of all the stuttering. However, I managed to understand it all though. =) p.s.: I can do anything. ;P

[imseksie]

@LeBadman Haha yeah but I was being sarcastic! It's was pretty annoying, the stuttering.

[LeBadman]

This is good stuff, but I honestly think that they stutter too much. It distracts me from listening. "Wha, wha, wha, what, then then then then, and and and, that that, i-if, .." Sigh, no offense.

[midorelife]

great video-Porter parabens!!!!

[OneGamblor]

Michael Porter is a living legend in business, if only I could be as intelligent as you are.

[theSugarRob]

the awkward moment when Michael Porter says hot and sexy!

[NeilM1989]

PORTER is a CUNT

[alfagsd]

@NeilM1989 your a cunt

[javed86]

Press 5 for Porter's Preferences

[archie977]

the bewildering thing is that these criminal ass holes arent put in jail.

[MatureMarketing]

If anyone is intrested in targetting the over 50s. Then follow me on twitter to ask any questions you wish.

[anmolsc]

Companies cannot make strategic choices assuming that the threats of entry will not grow or that no new substitutes will be developed

Porter’s assumption that firm’s profitability depends on how attractive the industry is = wrong

[firstspar]

@anmolsc Idiot its a snapshot analysis.

[jackcharltonslad]

@anmolsc Bold statement. Its not a static model nor is strategy static. Strategic choices are made depending on the strengths and weaknesses of the forces at a given time. The model has to be revisited constantly so that the firms strategy evolves as industry conditions are evolving. This way competetive advantage can be sustained.

[gladys245]

es posible que este video sea en español

para poder entenderlo

[LataPH]

it sounds so funny because of his american accent

[0500666111]

@LataPH ... honestly , I don't see it funny ! The American accent is much better and easier to comprehend than the British accent

[LataPH]

@0500666111

it's a joke) i really did not mean it in the offensive way. ..

i apologise)

[michaelcsnook]

i go to university

[rachelledotcom]

Our Manstra prof brought me here... ¬¬

[My2Black]

like the message !

[IMattPiperI]

The way you are commenting makes you seem very egotistical! And just because you have a limited vocabulary of complex words does not give you the right to talk down to people. You also spelt enitled wrong, it appears your spelling needs touched upon. So stop commenting and trying to be smart when you should be gaining information from Michael Porter. Or eat a chocolate bar and be happy haha.

[themikeferry]

@IMattPiperI There is NO such word as "spelt!" And BTW it's entitled. So judge not lest you be judged....Take a little time and look in the mirror and review your own "limited" vocabulary. So shut it....and watch the video

[IMattPiperI]

@themikeferry Ha-ha (sorry I mean lol) "BTW" why use that abbreviation its stupid like you. Spelt is a word. It is the past participle of spell. It is also a type of wheat, and therefore also a noun. It depends upon whether you are using British English or you are using American English. I am Scottish therefore I am in the right. You Tube must be broken if the letter “t” is missing in entitled because it was not me. I suggest you should take a look at your vain and vacuous-self.

[sucra87]

"its one of those sexy industries"- is it me or that sounded weird?!

[taramisuu]

Porter's five forces is mentioned in almost all of my business textbooks.

[Alowisiuz]

How could someone possibly dislike this video? Porter explains his 5G model in children's language. This is one of the most usable video's about strategy. If your watching this movie and you dislike it... .what where you looking for? What word did you type in the search bar? How did you end up here? Mmmmm, maybe an interesting subject for a study.... Porter, I need a strategy!

[THEvaqueen]

@Alowisiuz Are you mad at the 200,000 that didn't rate it at all??? top being egotistical and self ntitled to bash people based on their opinions---tired of youtube!

[Alowisiuz]

@THEvaqueen Are you responding to my comment? If so, read the whole text first, because you don't really say or add something of value at all. Please, if you are searching people you can bash, witch I didn't (I was merely wondering why), you shouldn't even be here. If you can't see the simple joke, there really is something wrong with your life. So go out, away from your computer, eat a bar of chocolate and be happy :D

Cheers!

[THEvaqueen]

@Alowisiuz Darling, when I responded to your comment it ws out of frustraition the level of pompus sense of entitlement found on various blogs where people are bashed because of nomina opinions. Everybody does not need to be consensus of one another. Please brush up on your proper english (which, not witch) and shove it, boo. ;)

[THEvaqueen]

@Alowisiuz Darling, when I commented on your childish statement, it was out of simple frustration on the level of pompus sense of entitlement to put down people for their opinions found on various blogs, in which you clearly ecompass. Everybody does not need to be in consensus of one another. You were simply the breaking point of my sience. Brush up on proper english, (which, not witch) and have a great day, boo.

[opium25]

@Alowisiuz Maybe it was by someone who thinks Corporate Strategy is a pile of steaming horse shit or who does'nt give a shit how big corporations should make a profit,i didnt vote it down cos i do not care that much, i am sure it has a purpose, it's just that not everyone likes this kind of stuff but It seems you probably get off to this video cos of the way you are going on about it and how people could actually dislike it or just not give a shit, anyways i wish you a nice day, take care

[sheroyg]

@Alowisiuz omfg such geek,

[LeBadman]

@Alowisiuz "place a cap on your profitability and growth"? "a holistic way of viewing"? That is not exactly child language. You would have to be a) very good at English and b) Understand the basics of economy to understand what he is saying. You could also dislike the fact that they stutter like mad, which is distracting.

[Jimmyretired]

what has this guy ever invented, these bastards wear a suit and tie and talk shit, they have not done a days work ever, soon the working class to the miners are going to attack these type of people

[grimmjowi]

@Jimmyretired Suck my dick.

[aznfratboy]

@Alowisiuz If you said "FIve Forces" to the YouTube audience, 98% of them would think that it's a porn video.

[jermynkyv]

I reading this for my Management Information System right now..

[roncajayon]

hmmm... very interesting

I need to drill down further

[empireravenshadow5]

Dear Mr. Porter

Unfortunately your model does not apply to some industries today due to technology today. You also do not acknowledge some non market forces.

Good Day to you

[earnshaw24]

@empireravenshadow5 you don't think he knows that? it was produced in 1979. He's not a mug.

[empireravenshadow5]

@earnshaw24 I agree, he probably does, still a useful model though...

[ctjholland09]

One of the most influential strategic thinkers today

[kodedra]

i like this because it allows me to understand strategy more clearly! thank you! its nice to have extra help when everything is so expencive.

[Babisinge]

Man this is so boring I think I chose the wrong course. Oh well this is my last year at university thank God

[samueltouchdown1]

@Babisinge

haha fuck I also find this pretty boring. Im only in second year though! uho

[yaliyalith13]

Thanks from business student in Trinidad!

[tbointernational]

By now i have managed to catch quite a few of Porter's video and each of them had something or the other to offer. Thanks.

[TheCrappyaccount]

Thanks Harvard keep them comming....

[gamie123456]

half the way of speech I did not know what are the five forces he is talking about, is it something in the air, or ghosts?!!!!!

[Espadanxmusic]

Every time i hear this man talking, i am really suprised how young his voice sounds !

[fireatheaven]

@Espadanxmusic He's had a voice lift

[hameedlaghman]

This man is genius. I did a lot of reading but i no one explain it in such a simple manner. Now after watching this video i will never forget this .

Thank you

[ArubaLifestyle]

What is the title of the article you are talking about?

[hameedlaghman]

He is explaining Porter's five forces technique.

[mrsjaneyh]

@ArubaLifestyle I think it's Harvard Business Review, January 2008 "The Five Competitive Forces that shape strategy"

[joetube1988]

Yeah Micheal Poreter is a genius, but i'm afraid wether he has applied his theory in real bussiness.

Waren Buffet, Steve Jobs, Bill Gates etc. Live Strategy !

[SlurpMyFat]

@joetube1988 you don't see his "live strategy" because he's a professor, author, and consultant/advisor, not a business owner/CEO/president of a large firm

[jackcharltonslad]

Theres something really likeable about Porter! I bet hes a real fuckin nice guy!

[CathyPresland]

Still relevant today for those of us working in Business Strategy - too often clients focus on the immediate competition and forget that the market is changing all the time. Look at the demise of record companies selling music as a great example of customer choice and technology driving change.

Thanks for your time Michael!

Cathy

[bjbrunetti]

"purpose of strategy is alignment" - love it!

[chsiang719]

thanks~ 

[vibisavi]

thank you

[ChinaBecky]

That's him~~

[KrustyKrisp]

In innovative markets you should also think about the power of complementary goods. The value of an xbox or ps3 is mostly determined by the games that come out for it for example. But maybe he didnt create a six forces model on purpose since you cant make a cool symetric figure from it.

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[r3bony]

Thanks a lot. Really helps me in my dissertation. Such a great man Prof. Porter.

[TheDunnapotha]

Superb. The fundas given by Prof Porter himself.

What more can one ask for?

[CabronDioz]

I've seen this interview close to ten times already but it never gets boring.

I love how Porter is so passionate about his work, it really makes me want to study.

[b29349]

Buffett New Corporate Structure - DA Airlines Drink Air, COKE should BUY an AIRLINE and have passangers recycle the bottles for points towards tickets and on board bottled water. b29349@yahoo.com

[12345615804]

@b29349

[kayss88]

His voice is so sexy for an old guy : D

[hifistereo]

porter is a babe.

[TheZentopa]

In reference with Porter's five forces include

- three forces from 'horizontal' competition as followings;

1.the threat of substitute products.

2.the threat of established rivals.

3.the threat of new entrants.

- two forces from 'vertical' competition as followings;

4.the bargaining power of suppliers.

5.and the bargaining power of customers.

For his remarks, 'horizontal' is prone to deal with external sources meanwhile the remainder are internal threats combined in terms of 'vertical'.

[MrLifesstyle]

@TheZentopa: I'm not really sure about the idea that vertical iterms including bargaining power of suppliers and buyers are internal sourses. Firms' these powers actually depend on the external factors like how many competitors or quantity of customers. Can u make it clearer please, thanks!

[ampleoppourtunity]

Thanks for this video

[firebyrd18]

How is this related to organization design? Or is it?

[CabronDioz]

So I have a question: which of the Five Forces comprises (the bargaining position of) labor unions?

[trancenode]

@CabronDioz Labor unions destroy competition internally between employees. However, with that said... Employees provide their labor as a resource to the company, so you could possibly think of them, as individuals, or as union, having bargaining power as a supplier of labor. That is my understanding.

[gbnstt]

tsss un profe asi en la U.. estay al otro lado.. listo pa gerenciar.. no komo los pajeros enrredados ke me tokaron para industrial

[guterine]

Saludo a mis amigos de la Especialización en Gerencia de Empresas, Servicios y Productos de la Música, UEAN, Bogot{á, Colombia. n3l was here!

[pandahunter]

the key is to look how Porter has used the age old 5 strategies that were unwritten, consequently wrote it down and appended his name to it in order to promote his name and branding. that to me, is an application of genius.

[lookwhoscomin]

These 5 principles cannot be implemented to all situations as there are some drawbacks. Usually you compete with specific companies and not the industry as he puts it. You don't see McDonald's competing with The Fat Duck restaurant.

[snoopwoggywogg]

@lookwhoscomin but they do... and the fat duck restaurant is competing with mcdonalds! and mcdonalds are also competing with other mcdonalds as well! (since they are franchise models)... as long as a customer has an alternative choice where they can eat, and as long as each restaurant has their own strategies in location/price/quality of foods/advertising and as long as the suppliers that offer these restaurants a price for the previous mention... then the porters 5 competitive forces apply

[phunt145]

The concept of the 5 forces is very useful, however I believed that it is very simple and It was always around and nobody wrote about it... very clever Mr. Porter...

[E1NS2WEI]

Am I the only one who thinks that Porters five forces are just what every Top-Manager knows as well when he deals with Strategy?! But as a Harvard prof. you´re a genius when you write it down...

[chheidze]

I like that M. Porter not just SuperIntelligent, but also has a sense of humor )

[burkelad1980]

Michael Porter reminds me of an old Michael Bristow.... Absolute legends in the world of man on man semi hardcore gay porn of the mordern era. Think we could all learn the lessons discussed here.... For example.... Never, ever go to a shoot without first shaving ur ass... It's just good manners!

[MarketingBeyondAds]

Fascinating discussion on marketing strategy.

[EBooks110]

Okay, I am trying to get it

[blueMac17]

Excelente pero lo necesito con subtítulos en español

[lucianqueen777]

where can i get access to his article? really loved this interview

[andrei199104]

Just put the title of this video into Google, and I think the second result will be a PDF file. Looks like the full article released to public free of charge (you'd have to subscribe to HBR to get the article there...)

[ahmershah1982]

thanx for upload, the genious M. Porter

[gstyles747]

Anyone know where i can acquire this 'new article' Sir Porter talks off?

[aymanshalaby1]

read the case, really awesome

[LalitMoorjani]

This is a good Post, Very helpful to visualize new strategies and understand the drivers of profitibility and competition.

Lalith Moorjani

Piscataway

[albanm1687]

i just watched this in class for class.. weird.

[mrphoto776]

I love that I don't have to pay harvard prices to get such great instruction.

[tomblack2112]

@mrphoto776 Hi. I'm from the Harvard Business School Online Youtube Payment Center, and I'm here to collect the $50,000 you owe us for watching that Michael Porter Video 5 months ago. So if you could just email me back, I will set up the paypal account for you. Ok? Thanks, you have a nice day.

[MegaBenny65]

Getting most common investors is a very good business plan. Free business plan template from

unitedbizbooks. com/business_pro.php . There are many ways to start but be prepared.Best Wishes

[VolpetSoftware]

Very good. I found Porter's paper really the best ones on strategy. They make sense, and they are loaded with examples. Keep up the good work.

[fatcrack88]

PORTER TURNS ME ON

[MrIHATEWILL]

Maybe the interviewer is scared because MICHAEL PORTER kicks ass

[ChrisJeffs]

the five forces aren't some kind of genius revelation

[prabash78]

very rare and important clip

[lighthousekeeper205]

Thanks for this...big big help for my course work.

[chelseafc81]

Thank you for sharing, it helped me with my coursework

[hardheadcast]

Thank you HBR and Professor Porter for sharing this video. I am currently a student of strategy.  really great to get the overview from the Father of the Framework.

[kunstinflammen]

Amazing

[ShoCkV6]

lol he sums up the whole video in the last couple of minutes ...

[mbax7ap2]

thanks for sharing

[julianken2008]

what's wrong with this interviewer?

[rosewitch2000]

thank you for sharing =]

[rorings]

thanks for sharing!

[atomscalp]

i don't think he's right..

[senghongtek]

thanks so much for sharing