Contemporary relevance of Porter’s Five Forces to corporate strategy
Introduction
Porters Five Forces introduced back in 1979 by Michael E. Porter from Harvard University in his first book Competitive Strategy. It becomes international best seller, and considered by many to be a definitive work on corporate strategy. The book itself had been published in nineteen languages and re-printed almost sixty times, changes the way business leaders thought and remains a guide of choice for strategic managers the world over. It has become an important tool for analyzing an industry structure and strategy process [Morrison M., 2008]. Porters work has had a greater influence on business strategy than any other theory in the last half of the twentieth century [referenceforbusiness.com]. The tool provides a simple perspective for assessing the position and competitiveness of a corporation or business organization within the industry. Porter points out five forces which the upturn and downturn, will affect the profitability and existence for a corporation or business organization.
