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Not true. One of his five forces was the threat of substitution. In other words, while many businesses are focused on their direct rivals, they don't notice the
by SiVal 14y ago
Not true. One of his five forces was the threat of substitution. In other words, while many businesses are focused on their direct rivals, they don't notice the looming alternatives that could make them and their direct competitors irrelevant. A Porter-style 5-forces analysis would REQUIRE the business to broaden its view of competitive threats.
- mtgx 14y agoSubtitutes may not even be half-way there in understanding disruptions, though. Water or soda are substitutes for beer, but that doesn't mean they are disruptive. In some cases, they can be. Like blogs vs newspapers. But in most cases, substitutes don't refer to disruptive innovations, that's why I think it's not even "half way there". Which means it's putting too little focus on disruptions, when disruptions can literally kill your company, no matter how big it is, within 10 years of appearing.