Nicholas Carr writes Michael Porter overturned much of the conventional wisdom about business, in his book competitive strategy showing that the governing assumptions reflected a much too narrow conception of competition. Companies don't just battle their direct rivals for the profits in a market, Porter argued; they also contend with suppliers, buyers, substitute products, and potential new entrants. Together, these five forces of competition shape the structure of industries, determining how much profit is generated and how it's carved up.He argues that as the power of unions and government regulators has waned, the public itself has become a force shaping industries and influencing the generation and distribution of profits.
I agree that in the flat world, where citizen democracy, assertive customers, long tail and blogs rule the world, enterprises need to certainly factor in the sixth force in articulating the business strategy as the balance of influence and power has clearly shifted in favor of the masses.
Category :Emerging Trends
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