ASSIGNMENT NO.

2
Name. Hammad Bin Ajmal.
Subject. Seminar In HRM.
Section. BBA-6A
ID. 20-ARID-4007.

SUMMARY
About Michael Porter.
Michael Porter is the author of nineteen books and more than 130 articles. He has won
many scholarly awards and honors including the Adam Smith Award of the National
Association of Business Economists
In this article Michael porter discuss about strategies ,what are the strategies and how
we implement into in a organization.Michael porter enforces the use of Competitive
Strategy for sustainable advantage because its all about being the most distinct novel
and non-identical.
Therefore making the players commit things in a very distant way to others or
executing activities which are novel in nature leading to a healthy competitive
advantage. For further clarification he classifies the origins of strategic positions into
three classes namely variety based positioning, needs based positioning and access
based positioning targeting the subsets of products, satisfying a niche and playing
with the geographical factors respectively. But keeping in the mind the dynamic
nature of the market the player must not lose the variation capability and should not
be complacent at all.
He also discuss about need of making tradeoffs, because we cannot be all things to all
people it will be mess of conflicting priorities. He emphasizes on the need of potent
specialized area’s through which CA should bederived. And as we all know that
things organized together in a neat manner are always better than loosely attached
strings therefore a Fit should be maintained in all the functional areas of the company.
Promoting coordination leading to effective operations and keeping everybody on the
company on the same page regarding your overall strategy.
He introduced three types of fits namely simple consistencies, supporting nature
and optimized coordination, claiming the latter one to be the most perfect for
sustaining CA.
Being active and beware of the external changes is also a part of his article’s
viewpoint, that the external factors do effect the success of the company but by no
means it can over take the danger the company is opposed to from within the
organization. So the inconsistencies has also been named by porter in the article that
are competing priorities, functional boundaries and poor vision.
Hence it’s a balancing act of managing the internal inconsistencies with the dynamic
external jungle of vicious players who wants a piece of us.
He introduce the forced that are very important about to shape the strategies.
Threat of New Entrants: Refers to the threat that new competitors pose to current
players within an industry.
Bargaining Power of Suppliers: The concept that suppliers can apply pressure to
companies by lowering product quality or availability, or raising product prices.
Bargaining Power of Buyers: The pressure that customers/consumers can put on
businesses to get them to provide higher quality products, better customer service,
and/or lower prices
Threat of Substitute Products: Companies are concerned that substitute products or
services may displace their own. The threat of substitution is high when rivals, or
companies outside the industry, offer more attractive and/or lower cost products
Rivalry Among Existing Competitors: Competitive rivalry is a measure of the
extent of competition among existing firms. Intense rivalry can limit profits and lead
to competitive moves, including price cutting, increased advertising expenditures, or
spending on service/product improvements and innovation.

concluding the article porter forces huge amount of pressure on maintaining what we
already have gained i.e. the competitive advantage and never let go of it.
And build even deeper foundations on it hence creating our non-erodible advantage in
the market and making us less vulnerable to the ever changing nature of the
competitive jungle we compete in.