Do you enjoy strategy? Test how well you know the main forces of business strategy, as taken from the classic Porter Analysis. Learn or brush up on the Porter Analysis and be even better.
Put a check beside the correct answer.
1. What are the classic strategic forces of the Porter Analysis?
__A. High, Profitable Growth at any cost
__B. Strengths, Weaknesses, Opportunities and Threats
__C. Substitute products, Established rivals, New entrants, Suppliers, and Customers
2. Does Porter's term "substitutes" cover only direct, same exact kind of product or service competitors?
__A. Yes
__B. No
__C. Both, depending on the situation
3. I know the strongest Porter Force in my industry.
__A. Yes
__B. No
__C. Maybe
4. The Porter Forces are usually illustrated as a:
__A. Bar chart
__B. Set of spaces surrounding your company in the middle
__C. In a hierarchy from weakest to strongest
5. The Porter Analysis Model became popular because:
__A. It is very difficult, complicated and impressive to look at
__B. H.P. Hassenfrass endorsed it.
__C. Business leaders have found it to be a tool that rapidly summarizes, communicates and analyzes key strategic information regardless of industry.
Answer Key:
1. C
2. B
3. A
4. B
5. C
Give yourself one point for each correct answer:_____
Results:
0-1 - You are new to the theory and would probably gain from an overview. The five classic forces summarize the main areas of possible threat as well as opportunity. In adddition to the substitutes being separated out from mere competitors, he distinguishes between direct competitors being established and new entrants, an important yet easily glossed over distinction with out a strategic model from which to start. The diagram that Porter used to illustrate the summary is masterful in that it gives a clear and obvious picture of the totality of one's company within their given industry. The best theories are simple and although this one is highly informative, it is simple at its core and has thereby become widely used and respected.
2-3 - You appear to be familiar with the approach. You either used to know it and could use a little review, or used some common sense and saw the reasoning behind it. There is a lot of common sense behind the Porter Strategy Model, however carefully analyzed and well thought out approaches based on case studies and experience put one a step ahead.
4-5 - Well done. Keep your eyes open for challenges and continue to read more on the topic at w2wlink.com.
Jean Lewis,
has edited and written for consumer Web sites and publications reaching nearly 50 million people. Her credits include writing and editing online and print articles, sales and training materials, marketing collateral, and advertising and PR for conusmer companies including BeautiControl, a Tupperware subsidiary's publications to women ages 20s through 50s, the WHO Foundation, Women Helping Others, MCG Magazine, Los Angeles and Seasonal Living Guide for Sam’s Club, a retailing subsidiary of Wal-Mart. Her career also includes working and living in Canada and Japan. Jean is well regarded for her market-research based approach to managing story development enabling consistently original, relevant and timely content.
