Competitive strategy analysis and Michael Porter's theory

In economics, supply and demand determine the conditions and characteristics of a market or industry. The “structure, behavior, efficiency” model in industrial economics states that the structure of an industry is determined by conditions. Therefore, the resulting competitive environment shapes the behavior of organizations and determines the performance of actors in each industry scene. Despite various methods for designing and formulating strategies, most strategic planning methods lack a structural approach for a complete analysis of the industry. With the help of the system dynamics approach, it is possible to comprehensively analyze the system under study and measure the feedback of the designed strategies before implementing them in the real environment. Accordingly, Michael Porter’s competitive strategy model, which analyzes the competitive environment, was examined. In the competitive strategy model, Michael Porter introduced the subsystems affecting a business in Porter’s five forces. Despite considering all the influential factors, his model lacks a method for examining and analyzing the feedback of a strategy before implementing it in the real system. This study, by examining the details of Michael Porter's competitive strategy model, presents a causal model for analyzing the feedbacks of widely used strategies. Based on the presented article, the model can be customized for different businesses and the strategy feedbacks can be measured before applying it to the real system.

کلیدواژه ها:

Competitive strategy model ، dynamic analysis ، strategy feedback review