X
Why register?
Welcome to the world's #1 website about management.
- Discover 1000s of knowledge centers.
- Learn from colleagues and experts.
- Share best practices with 1,000,000 members.
- Accelerate your management career.
- 100% free.
|
Substitution in the Five Forces Model
PRASAD SN, Professor, India
I am interested in 'substitutes' such as:
1. New inventions - e.g. Mobile phones as communicators
2. New applications of existing products - e.g. Internet on mobile phones
3. New technologies to gainfully use existing materials more effectively -e.g. Nanotechnology
4. New discoveries about an existing product/material - e.g. Use of aspirin to treat heart ailments
The list goes on. Is the impact of the likes of the above covered in Porter's framework? I think the threat from such forces which makes the product or service obsolescent / redundant is more important today as compared to all other forces put together, because the time frames for new inventions and discoveries to take place has come down. Can we call it an increase in the rate of evolution of the mankind?
|
|
| |
|
Inventions or Substitutes Make new Rules, They don't Follow old RulesJagdish B Acharya, Consultant, India When a substitute or invention comes, it changes the paradigm and new rules or models are born or searched. It is difficult to find models which may explain substitutes or inventions. But see: Disruptive Innovation. Simple substitute is increase in supply which may follow rules but real innovative substitutes cannot be explained, generally. Case to case treatment must be done based on nature of substitution. |
|
| |
|
Porter's Five Force and SubstitutesSatriyo Dharmanto, Deputy ICT Director, Indonesia It's a very useful tool that can be used to make significant analysis of our industry, in the combination with any other related tools. Regarding the threat of substitutes, I personally think that new technology development is a substitutes parameter that can be considered to provide answers, towards current turbulent economic condition |
|
| |
|
Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.
|
|
|
|
|
Special Interest Group Leader
|
|
|
More on Five Forces (Porter) | Five Forces Analysis
|
|
|
|
|
|
|
|
