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To: Mike Buckley who wrote (27432)	7/7/2000 4:39:21 PM
From: areokat	Read Replies (1) \| Respond to of 54805

"Wish I had gotten around to reading Porter by now but I haven't" You probably have the same problem I do, there's a whole lot of reading to do when it comes to Porter. Hey tekboy, there's got to be a "Cool Post" in Porter for you? Tom

To: Mike Buckley who wrote (27432)	7/8/2000 1:50:10 AM
From: tekboy	Respond to of 54805

From Living on the Fault Line, p. 93: "The classic formulation of competitive advantage is Michael Porter's five-forces model, each referring to a source of competition for control of a given marketplace: suppliers, customers, existing competitors, new entrants, and substitutes. This model is as useful today as when it was published. Its goal is to isolate the constituencies in a a competition for market advantage, to determine in any given market who has what kinds of leverage, and to base competitive strategy decisions upon that analysis. Nothing we are going to say in this chapter [Ch. 3, "Competitive Advantage"] displaces the need for this effort. "Nonetheless, the model is weak when it comes to dealing with discontinuous innovations, in large part because it takes a fundamentally company-centric view of competition, presuming no significant disruptions in technology, value chain, or market structure. In mature markets outside the technology sector, this works out all right. That is because the core technologies that drive the sector have long since been absorbed, the basic value chains long since established, and the market structure long since stabilized. The only significant variables left are company execution within its market position and differentiation of its offerings--just what the five-forces model focuses on. But this is not the case in technology-enabled markets where power ebbs and flows based on companies mastering the disruptive technologies that create discontinuous innovations." tekboy/Ares@noparrotsinthisone.com