How to apply Porter's forces in your business
Ays come from a known competitor or new market players, but from new products or services that make your solution outdated . Therefore, it is worth calmly considering that threat, which represents Porter's fifth and final strength. Once again talking about digital transformation, it is undeniable that this movement has brought radical (and permanent) changes in the way people consume products and services. Even tasks that seemed almost impossible to scan a few years ago, such as signing documents or purchasing clothes and shoes, are common today. Therefore, think about the following questions: • Is there a project or prototype that could replacemy product? • Is there any part of my job that could be automated, replaced Jiangsu Mobile Phone Number List or outsourced? • Is it easy to find alternatives to the solution I offer? How to apply Porter's forces in your business ADVERTISEMENT Michael Porter himself identified 3 general strategies that can be applied by any business to benefit from the data found in the analysis we have just seen and differentiate themselves in the market. These strategies are: • cost leadership: the proposal is to reduce costs and increase profits by charging to the industry standard or reduce prices to increase market share, maintaining current profits; • differentiation: implies differentiating the product significantly from competitors, by betting on your constant development, as well as new sales and marketing processes ; • focus: it takes great knowledge about the market and all its variable
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s to focus on the right niches and increase sales, reducing the negative impact of any of the 5 forces. A new force to differentiate yourself from the competition Another force, usually called Porter's sixth force (although it was not used by him in the original article) can also be of great help in explaining strategic alliances between companies. In the end, these alliances are formed all the time, whether by large companies or small businesses. This force is called complementarity, when one product or service can greatly benefit from being marketed alongside another. Examples of this involve the association of fast food networks with soda or chocolate brands for the production of desserts, or of tourism agencies wit
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