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Porter's Five Forces and the Social Web
- Quinzel 3y agoI personally think porter’s five forces on its own is a weak tool for strategy especially within the context of tech businesses because actually the advances in technology and the emerging dynamics they create are harder to predict than they are for businesses that are proud to be analogue and so therefore predicting with any certainty the shift in trends etc is harder. Don’t get me wrong, porter’s 5 forces has its place but there are way better strategic frameworks to use particularly within the context of tech. I think more businesses need to be focused on how to create value, especially more so as AI becomes more pervasive and integrated into everyday life. It would be helpful to focus less on what the competition is doing and how to compete, and more advantageous to look for ways to create value to people’s lives that they don’t already have. Who care’s what already exists, let’s think of something that doesn’t exist yet and work out a way to make it work in such a way that people really want it - so much so that they will pay for it, or immerse themselves within it so much that they’re willing to sacrifice their privacy, data etc in order to have this new thing that adds value. I think a lot of entrepreneurs do this by accident because they don’t care as much about what everyone else is doing, and they’re less averse to failure. ^ this is all just a matter of my own personal opinion however. Plenty of people will disagree.