Porter's Model Research Articles

Market segment evaluation based on fuzzy tools

The paper suggests a hybrid model with simplified and extended schemes for evaluating market segments based on strategic diagnostics methods and fuzzy multi-criteria analysis tools. The developed model's novelty and originality consist of forming a system of evaluation criteria based on the GROT criteria of I. Ansoff and the five forces of the M. Porter model (and in the case of an extended calculation scheme – with their decomposition into sets of relevant sub-criteria) and the use of the latest Fuzzy SBWM method (Fuzzy Extension of Simplified Best-Worst Method) to determine their weighting factors. Expert linguistic evaluations on a defined 7-level term set, followed by their transformation into fuzzy numbers with triangular membership functions, are used to evaluate market segments for each identified criteria (sub-criteria). The Fuzzy SAW method determines fuzzy integral estimates of market segments based on these sub-criteria. A practical case of evaluating the confectionery market segments of Ukraine for the simplified calculation scheme is given. The systematic approach makes it possible to determine the attractiveness of market segments for forming strategic recommendations based on the application of portfolio analysis methods, for developing and implementing diversification and logistic strategies.

USING THE "FOUR FILTERS" MODEL FOR CHOOSING THE OPTIMAL MARKETING STRATEGY IN INTERNATIONAL COMPANIES

The purpose. The purpose of the work is to develop practical recommendations for improving methodological approaches for determining effective marketing strategies of international companies in a competitive environment by means of mathematical modeling. Methodology. During the research, methods of system analysis and logical generalizations, statistical and comparative analysis, Porter's model, "four filters" model were used. The results. A scientific approach to choosing the optimal marketing strategy using the "four filters" model is proposed, which involves the consistent use of Wald, Savage, Hurwitz, and Laplace criteria. The scientific novelty of the obtained results lies in the improvement of methodical approaches to evaluation and selection of the optimal international marketing strategy, taking into account the criterion approach. The practical significance lies in the expansion of the theoretical plane and practical significance of modern and classical theoretical approaches to the content of marketing strategy in international business, the use of mathematical modeling to solve the problems of choosing competitive marketing strategies in the international business environment.

Using Porter's Strategic Model to Promote Sustainable Marketing In Light Of Behavioral Finance (An Analytical Study Of A Sample Of Small And Medium Enterprises In Najaf Governorate)

This paper determines the suitability of companies' activities that can contribute to enhancing their performance and achieving a large market share, especially in the field of diversifying funding sources. The purpose of this paper was to idintify the impact of Porter's five forces on enhancing sustainable marketing for the research sample companies. The paper was designed in light of adopting the descriptive analytical approach for the research variables and collecting data and information through the questionnaire tool distributed to the research sample companies. And using statistical analysis to reach the results, the study sample amounted to (21) companies operating in the field of tourism and travel. The results of the paper showed that there is a threat from new entrants in the tourism industry due to the presence of many competing companies. Companies had to develop a strategy on how to attract and retain customers to avoid switching from one company to another by using Porter's model to promote sustainable marketing and using behavioral financing sources. which is reflected in their competitive position due to the presence of different companies.

Оценка уровня конкурентоспособности организации

The article assesses the level of competitiveness of an organization using the example of Brief LLC. The competitiveness assessment was carried out based on the model of Zh.Zh. Lambena. Recommendations are given to improve the competitiveness of the organization according to selected criteria: relative market share; distinctive properties of the product; production costs; degree of development of innovative technologies; distribution channels; image. The assessment of the level of competitiveness is presented in a point system. The assessment was carried out by experts. The organization's competitiveness was assessed using various methods, such as: SNW analysis, Zh.Zh. Lambin, Porter models, assessment using the Grandars.Ru method. A feature of the assessment using the Grandars.Ru assessment methodology is the identification of criteria such as market share, degree of depreciation of fixed assets and innovative activity, assortment. The use of various methods allows us to obtain a reliable assessment of the level of competitiveness of an organization.

The Rosenzweig–Porter model revisited for the three Wigner–Dyson symmetry classes

Interest in the Rosenzweig–Porter model, a parameter-dependent random-matrix model which interpolates between Poisson and Wigner–Dyson (WD) statistics describing the fluctuation properties of the eigenstates of typical quantum systems with regular and chaotic classical dynamics, respectively, has come up again in recent years in the field of many-body quantum chaos. The reason is that the model exhibits parameter ranges in which the eigenvectors are Anderson-localized, non-ergodic (fractal) and ergodic extended, respectively. The central question is how these phases and their transitions can be distinguished through properties of the eigenvalues and eigenvectors. We present numerical results for all symmetry classes of Dyson’s threefold way. We analyzed the fluctuation properties in the eigenvalue spectra, and compared them with existing and new analytical results. Based on these results we propose characteristics of the short- and long-range correlations as measures to explore the transition from Poisson to WD statistics. Furthermore, we performed in-depth studies of the properties of the eigenvectors in terms of the fractal dimensions, the Kullback–Leibler (KL) divergences and the fidelity susceptibility. The ergodic and Anderson transitions take place at the same parameter values and a finite size scaling analysis of the KL divergences at the transitions yields the same critical exponents for all three WD classes, thus indicating superuniversality of these transitions.

Differentiation Strategy and the Performance of Medical Insurance Companies in Kenya

Against a backdrop of escalating global competition, health insurance firms grapple with the need to stand out amidst a saturated market. The study recognizes the imperative for organizations to adopt differentiation strategies, with a focus on product, personnel, distribution, and image differentiation. Acknowledging the current dearth of comprehensive research in the Kenyan context, the research problem centres on the critical need to investigate the extent to which differentiation strategies influence the performance of health insurance companies in the region. The general objective of the study was to investigate the effect of differentiation strategy on performance of Health Insurance Companies in Kenya. Drawing on established theories such as Porter's Competitive Advantage Model, Upper Echelons Theory, Resource-Based View, and Transaction Cost Economics, the study employs a multi-theoretical framework to provide a nuanced understanding of the complex relationships between differentiation strategies and organizational outcomes. Adopting the descriptive research design, the target population comprises 980 employees in the medical insurance firms in the top management and middle level management in Nairobi, drawn from the respective insurance firms’ Human Resources Departments. Employing a multi-stage sampling technique, the established sample size is 101 top and middle level management staff who were reached by stratified random sampling. A semi-structured questionnaire was the main data collection instrument and was distributed through a drop-and- pick- latter approach. Data was analyzed using both descriptive and inferential statistics. Descriptive statistics measures of mean and standard deviation was used, while for inferential statistics, regression equations were employed. The study established that product differentiation strategy, personnel differentiation strategy, product differentiation strategy and image differentiation strategy had a positive significant effect on performance of health insurance companies in Kenya. The study concludes that product differentiation is the key aspect distinguishing one company’s products or services from its competition. Personnel differentiation strategy gives an organization the ability to respond in time to the needs of their members through the skills and knowledge of employees. A differentiated distribution strategy allows insurance companies to expand their sale potential by getting their product in front of more potential customers. An effective image establishes the product's character and value proposition and a person responds differently to company and brand images. The study recommends that the insurance companies should consider opportunities for differentiation in all of its production areas: marketing, product management, engineering, sales, and customer support. Organizations looking to build personnel differentiation strategy will need to produce or design extremely unique or distinctive products or services that create increased value for the consumer. The insurance companies should devote resources to channel management preferably at least one dedicated manager whose sole responsibility is to manage those relationships and build the marketing programs to drive revenue through the channel. The insurance companies should identify their brand gaps, which are the discrepancies between their desired and actual brand performance.

Redefining Malaysia's printing landscape: insights from Porter's CAN Model

Malaysia's burgeoning printing industry, while showcasing potential, grapples with challenges that constrain its growth and global reach, underscoring the need for a deep and structured assessment. This pivotal study is designed to unpack the competitiveness of the Malaysian printing sector within the vast expanse of the global market, with a spotlight on the commercial printing segment. It revolves around the central inquiry: "Which critical factors mold the competitiveness of Malaysia's printing industry, and how can insights from Porter's Competitive Advantage of Nations (CAN) model illuminate them?" Anchored in the renowned Porter's CAN model, the research undertakes a multifaceted analysis of industry pillars, including intricate demand patterns, supply chain dynamics, prevailing competition, and the overarching influence of government directives. Data, meticulously sourced from 2015-2019 through national agencies and global institutions, forms the bedrock of this systemic examination. The study reveals that Malaysia stands fortified by assets like adept labor, contemporary infrastructure, and cost-effective energy provisions. Yet, it's not devoid of challenges, notably, the lag in embracing cuttingedge production tech and the absence of razor-sharp competitive strategies. However, the surge in both domestic and international demand sketches a promising trajectory. Beyond validating the robustness of the CAN model, the study weaves a tapestry of insights for industry stakeholders. It underscores the pivotal role of agile government interventions and the pressing mandate to integrate digital innovations. The findings beckon a targeted strategy to navigate and neutralize identified pitfalls, amplifying the industry's global resonance. While the study carves a panoramic landscape, its primary reliance on secondary datasets is its Achilles' heel. Still, it emerges as an invaluable compass for industry stakeholders, directing strategic investments and policy recalibrations to elevate the global stature of Malaysia's printing industry.

Industrial Cluster Design using Value Chain Analysis and Diamond Porter’s Model (Case Study in Batik Trusmi Cirebon Center)

Batik Trusmi is one of Batik industry areas with 164 Batik Industry listed. Batik Trusmi, currently a center for Small Medium Enterprises (SMEs), has the high potential to grow into an industrial cluster to give its stakeholders competitive advantage. The government’s plan to develop industrial areas in West Java, includes Trusmi Batik Area as one of industrial areas that will be developed over the next 20 years. This study focus on illustrating and describing the primary and secondary activities of the Industrial cluster and stakeholders function on the system by using Value Chain Analysis and Diamond Porter’s Model, and the Industrial Cluster Component and Condition Assessment of Batik Trusmi as the result. The Diamond Porter Model describes the conditions of Internal and External Aspects of the Industrial Cluster. The industrial cluster design delivered the desired result for Batik Trusmi based on the Industrial Cluster Success Criteria. The Cirebon Industrial and Trading Agency will oversee the integrated system, which will be able to increase the competitive advantage, manage demand distribution, standardize production processes and quality, develop a tourism brand for Cirebon, and put in place a monitoring and evaluation system to gradually develop the industries under the management of industrial cluster.

DIAGNOSTICS OF BUSINESS PROCESSES IN WINE-GROWING ENTERPRISES IN THE SOUTH-CENTRAL REGION

Using the approach of Michael Porter (Porter, 1980) for the analysis and evaluation of business processes, the present study examines the principles according to which these processes are organized in the Bulgarian viticultural enterprises. The main objective of the research is to analyze the business processes in wine-growing enterprises and to assess their status. Following Porter's model, viticulture enterprises are considered as economic entities that organize two groups of processes – core and auxiliary business processes. The organization of these processes is the subject of analysis. The aim is to determine which processes are primary and which are secondary and whether they correspond to the classic model advocated in the work of Michael Porter.

Factors of Value Chain Affect Bank Efficiency

This paper aims to determine and estimate the factors in the value chain that affect the efficiency of state-owned commercial banks in Vietnam. The study employs a combination of qualitative techniques, such as conducting interviews with top executives, financial managers, chief accountants, and employee surveys, along with quantitative methods like ordinary least squares analysis. The outcomes reveal four critical segments within the value chain – the retail department, operation department, back office, and call center – all of which significantly influence the efficiency of the banks. Additionally, drawing upon value chain theory and Porter's model (1985), the author underscores the significance of implementing a robust value chain strategy. This strategic approach has the potential to substantially enhance the competitive advantages of state-owned commercial banks in Vietnam. Doi: 10.28991/ESJ-2023-07-06-010 Full Text: PDF

Financial Management Strategies for Small and Medium Enterprises (SMEs)

Despite the substantial contribution of small and medium companies (SMEs) to socioeconomic and political growth in several sectors, a majority of these firms cease operations before reaching their fifth anniversary. A significant number of business owners exhibit a deficiency in their understanding of the financial strategies necessary to ensure the sustained operation and expansion of their organization. The objective of this qualitative multiple-case research was to get a comprehensive comprehension of the financial methods that small and medium-sized enterprise (SME) owner-managers might use in order to improve the sustainability of their company operations in the organizations. The present analysis was based on the theoretical framework of entrepreneurship and Porter's model of competitive strategy. Data of a qualitative nature were gathered from several sources, including semi-structured interviews, academic literature, and observational field notes. The study included a sample of six small and medium-sized enterprise (SME) owner-managers operating in the education and accounting/consulting service sectors, with a workforce size of less than 100 workers. The analysis of the data yielded five themes that elucidated the financial strategy practices employed by owner-managers of small and medium-sized enterprises (SMEs). These themes encompassed the following aspects: adherence to strategic financial practices, the acquisition of fundamental financial and business knowledge, the establishment of a robust financial reporting system, the articulation of challenges faced by SMEs, and the embracement of entrepreneurial resilience. The results of the study indicated that small and medium-sized enterprise (SME) owner-managers should use a dynamic approach in their financial strategy practices. Through this approach, small and medium-sized enterprise (SME) owner-managers have the potential to ensure the longevity of their firms. This, in turn, may contribute to the advancement of societal well-being by fostering employment opportunities, equitable distribution of wealth, technical advancements, grassroots development, and overall improvement of the gross domestic product.

Assessment of the Attractiveness of the Algerian Banking Market through the Application of Porter's Five Forces Model

This study aims to analyse the competitiveness of the Algerian banking sector by attempting to apply Porter's Five Forces model. Additionally, it examines the attractiveness of the Algerian banking market. To achieve these objectives, a descriptive approach was adopted by analysing statistics from the Algerian Central Bank and the results of previous studies. An inductive method was also used to apply Porter's Five Forces model to the Algerian banking sector. The study concluded that the banking industry in Algeria is unattractive due to the weakness and lack of implementation of all five competitive forces in Porter's model within the Algerian banking sector. However, despite this, entering the Algerian banking market could be profitable if the focus is on improving the weaknesses in the market, such as electronic banking services, financing for freelancers and startups, foreign trade, and Islamic banking services.

Environmental regulations and capital investment: Does green innovation allow to grow?

With rising pollution emissions, it is vital to devise regulatory policies that ensure sustainable development. Green innovation offers an alternative strategy, fostering economic progress and environmental sustainability. While existing literature supports the positive role of green innovation in firm-level decisions, its specific impact on alleviating environmental regulation pressures remains unexplored. This study aims to fill that gap by investigating the role of green innovation in the nexus between environmental regulations and capital investment. It analyzes a 10-year dataset (2010–2019) of publicly listed enterprises from 10 Asian economies. The empirical results indicate a significant negative relationship between environmental regulations and investment decisions. It further shows the positive impact of environmental regulations on green innovation. The current analysis suggests green innovation's positive moderating/mediating impact on the relationship between environmental regulations and capital investment. The results support Porter's win-win model and recommend sound policies to environmental economists and industry managers regarding the significance of green innovation in environmental sustainability and corporate investment.

Measuring network efficiency of the aquaculture value chain in Turkey

The objectives of this study were: (i) to analyze trout and sea bream/sea bass value chains in Turkey; (ii) to estimate the overall efficiency of trout and sea bream/sea bass value chains in Turkey by market type; (iii)to compare the profit margins and individual efficiency levels of producers, wholesalers, and retailers within each value chain. Research data sources were fish farms producing trout and sea bream/sea bass, as well as processors, wholesalers, exporters, and retailers along the value chain. Producer-level data were collected from 30 cultured fish farms in the Muğla province, using a simple random sampling method. Other actor-level data were identified using the snowball technique based on the response of the previous actor. Value chain analysis was conducted using the Porter model. A multi-stage network Data Envelopment Analysis model was used to estimate overall efficiency. Research results showed that in the domestic market, producers added the most value to both trout and sea bream/sea bass value chains while gaining the lowest total net profit. In the overseas market, sea bream/sea bass producers added the most value to the value chain, but gained a smaller total net profit than retailers. Trout producers added the second most value to the value chain but obtained a lower total net profit than retailers and processors. Research results also showed that retailers had the highest net profit margin in both value chains in the overseas market. In the domestic value chain, producers and wholesalers had the highest net profit margins in the sea bream/sea bass market, while producers had the highest net profit margin in the trout market. Based on the network efficiency analysis results for the domestic fresh fish market, the individual efficiency score of intermediaries increased as fish moved from producers toward the other links in the network. Producers had the lowest efficiency score in the overseas processed fish market. This study suggests carrying out holistic training and education, focused on creating fair value chains for fresh and processed fish with the cooperation of all parties. This would increase both the overall efficiency of value chain networks and the individual efficiency of intermediaries. Building a more collaborative culture among fish farmers, processors, exporters, and retailers along the fresh and processed fish value chains, and promoting communication between them, can also lead to increased efficiency of intermediaries.

Reconstructing the transport cycle in the sugar porter superfamily using coevolution-powered machine learning.

Sugar porters (SPs) represent the largest group of secondary-active transporters. Some members, such as the glucose transporters (GLUTs), are well known for their role in maintaining blood glucose homeostasis in mammals, with their expression upregulated in many types of cancers. Because only a few sugar porter structures have been determined, mechanistic models have been constructed by piecing together structural states of distantly related proteins. Current GLUT transport models are predominantly descriptive and oversimplified. Here, we have combined coevolution analysis and comparative modeling, to predict structures of the entire sugar porter superfamily in each state of the transport cycle. We have analyzed the state-specific contacts inferred from coevolving residue pairs and shown how this information can be used to rapidly generate free-energy landscapes consistent with experimental estimates, as illustrated here for the mammalian fructose transporter GLUT5. By comparing many different sugar porter models and scrutinizing their sequence, we have been able to define the molecular determinants of the transport cycle, which are conserved throughout the sugar porter superfamily. We have also been able to highlight differences leading to the emergence of proton-coupling, validating, and extending the previously proposed latch mechanism. Our computational approach is transferable to any transporter, and to other protein families in general.

E-marketing in Accommodation Business Model Innovation at Airbnb in Bali

This study analyzes the implementation of e-marketing in the accommodation business model innovation on Airbnb sites in Bali. Data was collected through observation, in-depth interviews and literature study. Data analysis was descriptive qualitative using Porter's Five Force Models (PFFM). This model is used to analyze competitive forces in marketing accommodation in Bali through the airbnb website. The results showed that the implementation of e-marketing in the innovation of the tourism accommodation business model on the Airbnb site in Bali by applying the PFFM proved to be quite effective. The competitive advantages of the Airbnb site are: multiple listings, two booking process confirmation systems, smaller booking commissions, competitive prices, no disparity rates, ease of registration, and marketing unique accommodation titles. Implementation of Porter's model is used to increase accommodation unit revenue by accepting bookings on the Airbnb situs site.

Major Driving Forces for The Indian SME Pharmaceutical Industry: Using Porter's Five Forces Framework for A Comparative Analysis

The author aims to study the major driving forces that affect the operational efficiency of the Indian pharmaceutical industry with special reference to the SME pharmaceutical companies in India. For this, Porter's Five Force Model is used as a frame of reference to gauge the effect of the various environmental and regulatory forces that affect the working of the Indian SME pharmaceutical industry, using Regression Analysis as the main tool. The reliability and the Regression equation derived from the Regression Analysis showed that competitive rivalry among existing firms is the strongest force, followed by the bargaining power of buyers, the threat of new entrants, the bargaining power of suppliers, and the threat of substitute products in that order. Many researchers have studied the Porter model in theory, and others have studied the different aspects of the pharmaceutical industry. However, there needs to be more research on the analysis of the pharma industry using the Porter model, apart from the pioneering work of Michael Dobbs. This study follows in his footprints and applies the Porter model to the Indian pharma industry with special reference to the SME units. The industry will find this research of practical value, especially for SME industries that can use the outcomes of this study to devise their strategies for growth and competition assessment.

Multi-criteria evaluation of agro-processing industries for sustainable local economic development in East of Iran

This study investigates the agro-processing industries potential to develop the local economic in the east of Iran as a developing country based on the sustainable development criteria including economic, social, environmental, and managerial indices. For this purpose, a hybrid multi-criteria decision-making model based on fuzzy SWARA and fuzzy EDAS technique is developed to determine the global weights of the criteria and prioritize the agro-processing industries as alternatives. Moreover, a conceptual analytical model based on the Porter’s diamond is utilized to evaluate the state of active firms in high-priority agro-processing industries, with the aim of providing the best applicable management insights. According to the findings, the most important sub-criteria are including “income growth by creating value-added”, “payback period”, and “number of jobs created per firm activated”. These sub-criteria are known as one of the most prominent managerial concerns in the local economic development area in Iran as the case study. Focusing on the prioritization results, the agro-processing industries for barberry and saffron products are identified as first-priority industries, while those related to the processing and packaging of medicinal herbs and production of jams and extracts of horticultural crops are ranked as second and third-priority alternatives, respectively. Based on the sensitively analysis, it can be inferred that the final result of selecting the best agro-processing industry is highly robust to the changes in the weight of the most influential sub-criterion. Moreover, Porter model showed that new entrants are not considered as a serious threat. Contrary to the buyers, the suppliers do not have a bargaining power because of the current market condition. Finally, barberry and saffron products have a great competitive rivalry in the national and international markets.

Enhancing the extended value chain of the aromatic plant sector in Italy: a multiple correspondence analysis based on stakeholders’ opinions

The aim of the study has been to understand the stakeholders’ stance, with respect to the different stages of Porter’s value chain, to learn what activities could create the most value to the future competitiveness of the Italian aromatic sector. The main challenges faced by stakeholders and possible future strategies have been investigated. A survey, consisting of four subsequent phases: creation of a focus group, identification of actors and experts, gathering of data, and processing of the data using descriptive statistics and Multiple Correspondence Analysis (MCA), has been performed. The stakeholders agreed that the Italian aromatic sector needs to enhance its value chain, but there is a polarisation of importance especially towards processors and retailers. Processors consider operations and outbound logistics as the most relevant primary activities, while retailers consider marketing and sales. Firm infrastructure and technology development are the more relevant support activities for retailers, while human resource management for processors. Farmers are apprehensive of imports, while processors agree that priority should be given to the bargaining power of retailers. Training of professionals emerges as an important future strategy to improve the extended value chain of the sector. The article investigates the extended value chain of the aromatic plant sector, according to Porter's model, in combination with a multivariate explorative tool (MCA). The results represent preliminary insights that can be used to diversify the role and sensitivity of different stakeholders, with respect to supply chain competitiveness and innovation.

Study of the Multimodal Freight Transport Sector in Romania: Analysis of the External and Internal Environment

The paper studies the current situation of the multimodal freight transport sector in Romania, using the analysis of its external and internal environment. The goal is to find out what are the pluses and minuses of this sector and what strategies must be adopted so that the targets set by the European Green Deal can be reached. This EU strategy emphasizes that, in order to reduce pollution, emphasis must be placed on multimodal transport, with an emphasis on rail transport. Thus, the general external environment is defined by the following factors: demographic, economic, technological, ecological, etc. While the labor force crisis in the road transport of goods deepens, and the average age of the staff in the railway sector is getting higher, the policy of the EU and, implicitly, of the EU member states stimulates multimodal transport, in order to reduce CO2 emissions. The Porter model shows that, despite the forces acting in a negative direction, the multimodal freight transport market is attractive. At the same time, from the strategic group belong both multinational corporations and enterprises with domestic capital, which underlines the attractiveness of the market. Thus, it is necessary to apply the strategy that involves a reduction of costs, but not by decreasing the quality of the services offered. On the other hand, the SWOT analysis indicates that multimodal freight transport in Romania is in the ideal/maximum situation. Therefore, it is necessary to apply an aggressive strategy. Thus a net competitive advantage will be ensured. The strategy consists in stimulating rail freight transport, which will contribute to reducing pollution.