THE FIVE COMPETITIVE FORCES THAT SHAPE STRATEGY

Porter’s five forces is a competitive analysis model which helps us understand the nature of competition within the industry.  It helps us determine the competitive forces in the industry.  By using this model, one can shape strategies to get ahead of the competition. These are the five forces of the framework developed by Michael Porter:

1.     The Bargaining Power of your Customers

2.     The Threat of New Entrants into your Industry

3.     The Bargaining Power of Suppliers

4.     Threat of Substitute Products or Services

5.     Rivalry Amongst Existing Firms

In my present job, in our school needs strategies to get ahead of the competition to acquire a large number of enrollees since it is a private school having a population of more than 500 enrollees. And with these, we lack teachers and classroom. Presently, there are around 17 teachers in this school. But still at the start of the school year, 30-70 students will be listed for a section.

As a teacher , we would be glad if there is another school opened nearby so that somehow our student population will be increase which in turn higher the number of students in a classroom from more than 35 to a much smaller number. And by then, a better quality education will be given to the students.

However, what will happen if the enrollees will dramatically drop to a very small number. Then, that’s a threat to our school budget subsequently a threat to the teachers who might be transferred to other schools. We will badly need this Porter’s Five Forces Model by then. J

ORGANIZATIONAL TRANSFORMATION CONCEPTS AND ANALYSIS

As an old adage says “Change is not a process for the impatient.” If an organization goes through transformation, it should be patient enough to tackle the practical application of the concepts involved the organizational transformation. It has to go through the process of transformation geared by a good transformational leadership.

Implementing transformation is not an option but essential to cope with ever-changing environment. The primary reasons why organizations need to undergo change include changes in the conditions of the environment that greatly  affects the performance of the organization and the gaps or discrepancies between the quality of performance exhibited by various organizations that raise the issue of competition and the need to survive amidst this particular struggle .

MegaChange is a new capability-based approach to undergo organizational  transformation. These are the features of MegaChange:

·     Capability Focused: MegaChange is based upon assumptions of human and organizational capabilities  rather than limitations.

·     Transformation: MegaChange is not a mere transition; it is cultural transformation of your organization.

·     Systemwide: MegaChange is not piecemeal, it is system wide.

Concepts, actions, and tools: MegaChange is produced using and integrated set of concepts, actions, and tools, not just tools without concepts.

·    Empowering: MegaChange affects everyone in the organization. It results in a joint optimization of organizational and individual performance, capability and satisfaction.

·    Cultural: MegaChange results in new and changed ways of thinking, acting, and cooperating.

·     Theory for practice: MegaChange is not a theory or practice.

·     Reformation: MegaChange is not about restructuring or reengineering, it is about reformation. It reforms structural concepts, actions, and tools necessary for creating organizations that achieve extraordinary levels of productivity and satisfaction by engaging human capability rather than denying it.

Organizational transformation capability can be defined as ability to sense the need to align resources, culture, process, and technology to achieve new forms of competitiveness. It is firm capacity that contributes competitive advantage in dynamic business competition.

The notion of organizational transformation capability derives from dynamic capability paradigm. Dynamic capability can be defined as the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environment.