The ‘Five Forces’ model has been promoted and taught widely
since it was first proposed by Michael Porter in Harvard Business Review in
1979
It is usually summarised through a diagram of which, through
widespread transmission, there seem to be an increasing number of variants. The
original ‘Maltese Cross’ layout seems to be quite enduring. The following four
versions were picked quickly from a general Google search:
The use of arrows in these diagrams is particularly confusing since it implies meaning which seems spurious on deeper reflection. It suggests that four of the forces all act on Competitive Rivalry, which in most diagrams is given a cycle of arrows suggesting that it also acts on itself
The model actually indicates that all five forces act on Competitive Advantage. So it could be better represented as follows:
But as a picture, this is far less visually interesting than the familiar layout. We could speculate on how far the satisfying visual symmetry of the ‘Maltese Cross’ layout, even with its logical flaws, has contributed to the longevity of the model, which might otherwise have joined a long procession of ephemeral ‘5 Ps’, ‘6 Qs’ and ‘7 Rs’.
Some commentators see meaning in the ‘horizontal’ and ‘vertical’ alignments (note that in one of the four 'random' illustrations these are reversed)
Any well-established, enduring business model will have its share of blind supporters and compulsive detractors. There are also those who seek to hi-jack a little of the international attention for themselves, such as through proposing a ‘sixth force’ and so on
Whatever the strengths or limitations of these models and their application, it is important to remind ourselves that completing them is not an end in itself. These are analytical tools, some of many, that we can use to complete a strategic analysis. The end product is new strategy.
Porter himself became very interested in the atypical nature of healthcare systems
Edgar Bolton. 10/04/2021.
Any views expressed above are purely mine and should not be mistaken for those of any organisations or individuals I have been associated with
