Size Up the Playing Field

Businesses can build a strategy based on the competition. Strategy is not a reaction, but a planned response and keen understanding of competitive pressures. 

First, consider the sources of competition in your industry. Michael E. Porter, a Harvard Business School economist and researcher who focuses on strategy, pinpoints four key pressure points:

>Threat of new entrants

>Bargaining power of customers

>Threat of substitute products or services

>Bargaining power of suppliers

Within these areas, companies jockey for position among competitors, according to Porter. Therefore, a strategy is born when closely analyzing each source of competition. So, what determines bargaining power for suppliers? A solid understanding of each of these components helps build a strong strategy, recognize the biggest areas for growth or differentiation, and understand a company’s biggest strengths and weaknesses.

Business Tools

Make Your Pitch for Investors

Your business has uncovered an opportunity—and identified an innovative solution. But where do you find funding, and how do you deliver a compelling pitch?

Culture

Navigate Market Challenges by Shifting Workforce Culture

Today’s employers face constant market changes and challenges, requiring a new focus on employee development. 

Business Insights

Maximizing Workforce Value Through Freelance Labor

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