This 500 words essay illustrates that a comparison of two theories. Firstly this essay is through brief definition of Michael Porter’s five forces model and SWOT analysis, it is widely acknowledged that there are some features about two theories. Secondly this essay is through analysis there two theories. The finally pare is said that the comparison of that two theories.
The Michael Porter’s five forces model is something that five competitive forces model about each countries, particularly to the competitive advantages of countries, rather than to microeconomics. Grundy and Tony (1995) demonstrates that Michael Porter’s five forces can be seen as ‘When Michael Porter conceived the five competitive forces model, it propelled strategic management to the very heart of the management agenda.The framework became a centrepiece of texts on business strategy and strategic management, and essential examination material on MBA and similar courses globally. But what has become of his original five competitive forces? It would appear to be the case that not a great deal has occurred to develop this thinking since the early 1980s (except, perhaps, for Hamel and Prahalad, 1994).’
Grundy (2001) siad that ‘Porter appears to have been more interested in taking his concepts to an even more macro level, particularly to the competitive advantage of countries, rather than to micro economics. Porter’s model, whilst it has done extremely well in occupying textbook space, does not seem to have captured the imagination of other theorists. In contrast with the resource-based theory of competitive advantage, which has spawned a considerable literature, it seems to have become, as it were, frozen in time’. This means Michael Porter’s centrepiece of texts on business strategy and strategic management have high value. (Grundy 1995)
A SWOT analysis is something that a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. This means that it is through four evaluation methods to evaluate some company. For example, SWOT analysis to evaluate Activision Blizzard, Inc. This company exist some risks, it said that ‘though the industry is taking various steps worldwide to prevent piracy, it still remains one of the major factors affecting potential revenues. In the recent years, organized piracy has evolved rapidly, enabling copying of the pirated titles through internet. The increasing piracy will adversely affect the business value of Activision Blizzard’s products and thereby its revenues.’ SWOT analysis to evaluate AIMCO company, it said that ‘AIMCO’s properties, in high-density urban locations near job centers and public transportation, are very attractive to this growing segment of population.’ this means that SWOT analysis is said that through four evaluation methods to analysis the situation of company.
Grundy, T. (2006) “Rethinking and reinventing Michael Porter’s five forces model” from Strategic Change 15 (5) pp.213-229, Chichester: Wiley
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Grundy, T. (2001) Competitive strategy and strategic agendas. Strategic Change 10(5): 247–260.
Grundy, T. (2003) Mergers and Acquisitions. Capstone Press: Oxford.
Activision Blizzard, Inc.SWOT Analysis (2014), 11st January, p1-9. 9p.
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