In the corporate world, organizations are expected to develop a hands-on approach that identifies competition and develops strategies to respond to the imminent threat. Company managers should identify various approaches that enable them to rethink their business models and strategies to overcome challenges affecting performance (Harvard Business Review, 2013). Porter’s five forces expose organizations to a practical environment where they can make informed decisions regarding the approaches that can be used to discover their potential (Harvard Business Review, 2014). This study will focus on the significance of Porter’s five forces and the need to have a responsive business model that outlines various issues that address the changing needs of individuals.
Ovans in What is a Business Model defines the concept as “a term of art” that enables corporations to respond to emerging challenges in the market (Ovans, 2015). However, Ovans proceeds to indicate the application of the term is influenced by the different interpretations of business models, which determine how people can use the concept. DaSilva and Trkman (2013) offer various insights that focus on the promotion of accurate information that illuminates the concept of business models and how corporations can align their strategies with the evolving consumer market. By using Porter’s five forces analysis, organizations can restructure their models to adapt to the changing times.
This study has highlighted the significance of Porter’s five forces and the need to have a responsive business model that outlines various issues that address the changing needs of individuals. Regardless of the business model adopted by an organization, discovering the strategies that can be used to achieve a competitive edge over other industry players is essential (Harvard Business Review, 2008). Based on the measures that should be used to overcome challenges, corporations can develop tactics, which focus on the changing needs of consumers in their immediate environment.
DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long Range Planning, 47(6), 379–389.
Harvard Business Review (Producer). (2013). A better way to think about your business model [Blog post]. Retrieved from https://hbr.org/2013/05/a-better-way-to-think-about-yo
Harvard Business Review (Producer). (2014). The Explainer: Porter’s Five Forces [Video] | Transcript. Retrieved from https://hbr.org/video/3590615226001/the-explainer-porters-five-forces
Harvard Business Review. (2008). The five competitive forces that shape strategy [Video] | Transcript. Retrieved from https://www.youtube.com/watch?v=mYF2_FBCvXw&list=PLoGhzQgdhGJws7SPKJqIY8FnzGm-QCcLj&index=1
Ovans, A. (2015). What is a business model? Retrieved July 5, 2016, https://hbr.org/2015/01/what-is-a-business-model