Interdependence of company’s industrial competitive position and its strategic orientation: A dynamic theoretical model

Abstract

This paper offers a conceptual model for revealing dynamic interdependence between company's competitive position using Porter's analytical framework "five competitive forces" and its strategic orientation as defined by Miles and Snow's strategic typology of organizational behaviour. As both models have been criticized for its static nature not fitting contemporary market dynamis, the proposed reciprocity of interrelationship between industrial structure and company's conduct in different time periods, provides a modern alternative for making strategic choices. The author suggests a theoretical correlation between company's previous, current and anticipated competitive positions with its previous, current and planned type of strategic behaviour. Accordingly, dynamically consistent successful strategic types (prospector, analyst, and defender) should be connected to the above average dynamical competitive positions. The proof of existence of such a correlation would indicate company's consistent ability to successfully adapt to (consistently changing) industrial environment.

Dinâmicas De Expansão Das Cooperativas Agrícolas De Café Da Região Do Cerrado Mineiro

“…O modelo das forças competitivas, desenvolvidos por Porter (1980), tem foco no posicionamento da empresa em um determinado mercado, e nesse modelo, o desenvolvimento de uma estratégia consiste em pesquisar em profundidade cada força e analisar suas fontes, o que destaca pontos fortes e fracos da organização, reflete seu posicionamento no setor de atividade, evidencia as áreas em que mudanças estratégicas possam resultar em maiores retornos e destaca oportunidades e ameaças (Omsa, Abdullah & Jamali, 2017;Gnjidić, 2018;Išoraitė, 2018). Já a Visão Baseada em Recursos emergiu das implicações estratégicas do ambiente interno, orientada para os recursos que a empresa possui e a relação deles com a performance da organização.…”

Porter’s Five Forces Influence on Competitive Advantage in Telecommunication Industry in Kenya

“…Similarly, the scholar points to the disregard of many influential factors in the model including the assumption that the consumers have no access to the substitute products and that there are no alternative markets altogether. Gnjidić (2018) adds more criticism to the 5 forces stating that industrial competitiveness and competition is under some control especially with the antitrust rules and the dynamism of most markets. Finally, Wee (2018) argues that the 5 forces if viewed together will always be at odds making it impossible to have a single strategy on approaching them on the same market at any one point.…”

“…Benjamin (2018) has defined Porter's 5 forces as the industrial framework proposed by Porter (1980) for analysing business competion using 5 specific measures including rivalry among the market firms, threat of substitutes, consumer bargaining power, supplier pricing power and entry barriers to that market. Other scholars including Gnjidić (2018) and Garland (2019) have enumerated measures of these 5 forces which generally involve the use of SWOT and PESTEL analysis. Isoraite (2018) has pointed out that there are both advantages and disadvantages of the 5 forces being analysed.…”

Fundraising competitive forces of small art and cultural NGOs during the crisis

“…Individual rivalry power results from competitive factors as better communication with donors, attractive design and image in social networks that the donors would like to associate themselves with, wide range of channels to donate and transparency of internal and external relations (Ziębicki, 2008;Gnjidic, 2018). A key concern for current and potential donors is how charities spend their money.…”

“…The model synthetically defines the possibilities and ways of strengthening the position within the current market concentration and its structure of entities. The focus is on the nature of competition typical for the industry and type of production (Gnjidic, 2018).…”