The engineer and professor Michael Porter left among his many contributions to business science, one especially used and that has transcended in a key way, his analysis of the five forces for business managementhas been later supplemented with a sixth force added from the Hax and Wilde Delta Model, in which a new factor is added, complementary companies. In this article we will make an approximation to these forces so that we know exactly what these forces entail and why they are important in the management of any organization business.
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In this article you will find:
The first force; Know the number of new participants
Knowing what the entry barriersIf these are more or less difficult to beat, we can also know if the number of competitors who get Entering the market is high or not, something in which we will see reflected the difficulty of access and permanence in the market. sector.
Second force: Neutralization of substitute products
When a company is successful in its business, it is common for an imitation of the products or services to occur, which important, according to Porter, is to create a powerful force that minimizes the chance that this generic product could break open He passed.
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Third force: Negotiation and cooperation with our suppliers
In this sense, Porter advocates the need to maintain a cordiality with suppliers, knowing exactly which are the products and services that are mutually provided since a profitable relationship in this sense is beneficial for both others.
Fourth strength: Good attunement with customers.
Porter envisions a business organization that "integrates" with customers, since in this way, we can achieve better results due to the loyalty that occurs with this type of strategy.
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Fifth force: Competitors, how to treat them.
It is important to take into consideration regarding competitors, in this sense they should never be a reference to guide our strategic actions. The company must be guided by its clients, suppliers and complementary companies. It is not about waging a war with competitors but a growth strategy based on the potential of the organization and market opportunities.
The sixth factor or force: Complementary companies
Seek support in companies that can contribute things to ours, from support to investment, since in this way we will get partners in the search for common objectives.
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