Abstract
We show how Porter's five forces that shape competitive strategies can be linked directly to long term profitability of industries, as measured by the return on invested capital. Illustrative cases from the Book Publishing and Luxury Cruise industries are used to demonstrate the linkage. The complete functional linkage was established with a 33-industry data base. As the five forces framework has become a staple approach to strategic analysis, playing a key role in both business practices and academic studies, this quantitative linkage to profitability provides analysts a powerful tool to evaluate their business propositions based on their subjective rating of the competitive forces involved. Of even greater potential is the prospect of a systematic exercise to train managers in innovative strategies through business intelligence, by benchmarking businesses facing like forces outside of one's industry, rather than conventional practices within one's own.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of e-Education, e-Business, e-Management and e-Learning
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
