S5 ECO 501 Slides Session 5 Five Forces (M Porter).pptx - What is Strategy Professor Michael E Porter Harvard Business School World Business Forum June

S5 ECO 501 Slides Session 5 Five Forces (M Porter).pptx -...

This preview shows page 1 - 8 out of 46 pages.

Copyright 2006 © Professor Michael E. Porter What is Strategy? Professor Michael E. Porter Harvard Business School World Business Forum June 6, 2006 This presentation draws on ideas from Professor Porter’s books and articles, in particular, Competitive Strategy (The Free Press, 1980); Competitive Advantage (The Free Press, 1985); “What is Strategy?” ( Harvard Business Review , Nov/Dec 1996); “Strategy and the Internet” ( Harvard Business Review , March 2001); and a forthcoming book. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Michael E. Porter. Additional information may be found at the website of the Institute for Strategy and Competitiveness, .
Image of page 1
2 Copyright 2005 © Professor Michael E. Porter 20060606 HSM Chicago – 06052006 Final NV.ppt In 2015, MSB attended a faculty seminar at Harvard
Image of page 2
3 Copyright 2005 © Professor Michael E. Porter 20060606 HSM Chicago – 06052006 Final NV.ppt Porter mostly teaches, but when he consults, he charges $175,000 per day. Can anyone be worth that much?
Image of page 3
4 Copyright 2005 © Professor Michael E. Porter 20060606 HSM Chicago – 06052006 Final NV.ppt How Managers Think About Competition COMPETING TO BE THE BEST COMPETING TO BE UNIQUE The worst error in strategy is to compete with rivals on the same dimensions
Image of page 4
5 Copyright 2005 © Professor Michael E. Porter 20060606 HSM Chicago – 06052006 Final NV.ppt Economic Performance versus Shareholder Value Economic Performance Shareholder Value Sustained ROIC Sustainable Revenue Growth Stock Price Earnings per Share EPS Growth Shareholder value is the result of creating real economic value Pleasing today’s shareholders is not the goal
Image of page 5
6 Copyright 2005 © Professor Michael E. Porter 20060606 HSM Chicago – 06052006 Final NV.ppt Flawed Concepts of Strategy Strategy as aspiration “Our strategy is to be #1 or #2…” “Our strategy is to grow…” “Our strategy is to be the world leader…” Strategy as action “Our strategy is to merge…” “… internationalize…” “… consolidate the industry…” “… outsource…” Strategy as vision “Our strategy is to meet our customers’ needs…” “…to advance technology for mankind…”
Image of page 6
7 Copyright 2005 © Professor Michael E. Porter 20060606 HSM Chicago – 06052006 Final NV.ppt Vision Statements Autodesk Transforming business by design Avon To be the company that best understands and satisfies the product, service and self-fulfillment needs of women – globally. Goodyear Tire and Rubber Become a market-focused tire company providing superior products and services to end-users and to our channel partners, leading to superior returns for our shareholders.
Image of page 7
Image of page 8

You've reached the end of your free preview.

Want to read all 46 pages?

  • Summer '19
  • Professor Michael E. Porter

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture