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Evolution in our Expectations of Business and Porter's 5 Forces Model

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Mario A. G. Lopez
22
Mario A. G. Lopez, Philippines

Evolution in our Expectations of Business and Porter's 5 Forces Model

One thing that does not easily float to consciousness is that over time, there has been an evolution in our expectations of business and in particular how we define RESPONSIBLE business business behaviour.
The model as originally conceived was very much focused on what were the most well accepted aspects of competitive business life at the time.
It failed to take, at least up until that time, the still evolving conceptions of corporate responsibility (social and ecological).

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  Jaap de Jonge
3
Jaap de Jonge
Editor, Netherlands
 

Evolution in our Thinking About Businesses

I totally agree with you. At the time the 5 Forces model was conceived there was little if any attention for corporate responsibility, in particular in the US. In Europe, Africa and Asia there was already more attention for societal influences and interests.
Porter's 5 Forces model focused almost entirely on the idea of COMPETITION.
This is also related to the fact that originally the 6th factor ("Government") was missing as well as a 7th: "Other Stakeholders" and we may even mention an 8th one: "Media".
Of course these have become very powerful forces nowadays and rightly so!

 

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More on Five Forces (Porter) | Five Forces Analysis
Summary Discussion Topics
topic Assumptions of the Five Forces Model. Limitations
topic 5 Forces in Emerging Industries
topic Government as 6th Force in Porter's Five Forces
topic Industry Analysis model
topic MEDIA as the 7th Force in Porter's Five Forces
topic Strengths of Porter's Five Forces Model
topic Substitutes and the Five Forces Model
topic How does Information Technology alter Porter's 5 Forces
topic Business Networking: Forces are Getting Connected
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topic Bargaining Power of Buyers. Examples
topic How to Deal with Competitors in Five Forces Analysis?
topic Measuring / Calculating the Five Forces of Porter?
topic There are More than Porter's 5 Forces!
topic Why Porter's Monitor Consulting Company Failed
topic Does Competition Increase the Need for Segmentation?
topic The New Industrial Economics School
🔥 Porter's 5 Forces Framework in Non-competitive Situations?
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Knowledge Center

Five Forces (Porter) | Five Forces Analysis



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