Evolution in our Expectations of Business and Porter's 5 Forces Model




Five Forces (Porter) | Five Forces Analysis
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Mario A. G. Lopez, Philippines

Evolution in our Expectations of Business and Porter's 5 Forces Model

One thing that does not easily float to consciousness is that over time, there has been an evolution in our expectations of business and in particular how we define RESPONSIBLE business business behaviour.
The model as originally conceived was very much focused on what were the most well accepted aspects of competitive business life at the time.
It failed to take, at least up until that time, the still evolving conceptions of corporate responsibility (social and ecological).
 
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Jaap de Jonge
Editor, Netherlands
 

Evolution in our Thinking About Businesses

I totally agree with you. At the time the 5 Forces model was conceived there was little if any attention for corporate responsibility, in particular in the US. In Europe, Africa and Asia there was already more attention for societal influences and interests.
Porter's 5 Forces model focused almost entirely on the idea of COMPETITION.
This is also related to the fact that originally the 6th factor ("Government") was missing as well as a 7th: "Other Stakeholders" and we may even mention an 8th one: "Media".
Of course these have become very powerful forces nowadays and rightly so!

   

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