Strategic Management Porters Theory

Question: Discuss about theStrategic Managementfor Porters Theory. Answer: Introduction It would be erroneous to hold that Porters theory of five forces has become outdated. For instance, the model of Porters five forces is used to analyze the industry environment. The hypercompetitive business milieu drifted the focus to the micro aspect of economics (Mella, 2012). It moved back to the theories of Schumpeter and the Australian School of economies theories. The five forces theory of Michael Porter encompasses descriptive work. To the opinion of economists (Mella 2012) in a hypercompetitive milieu, the system strategy should support the the variables of dialogues. It should perform the task, as far as other control systems are concerned. Consequently, in an enterprising competitive system the policy and strategy go through constant reinforcements. However, the theory of Michael Porter hardly delves into the process of decision-making that helps to contrive optimal dynamic strategy. It is believed that the learning process of an organization invigorates efficiency in the respect of strategic execution and moulding. Speaking briefly, the theory of Michael Porter hardly identifies the regulations of managers (Magretta 2013). Therefore, it does not spawn a versatile process that conditions the operation status of the firm. Therefore, it engenders a sphere of competitive advantage. At the other hand of the spectrum, the significance of Porters theory is huge. It underscores key elements of the management. It influences the strategic domain of the company (Magretta 2013). In the hindsight, the theory of Michael Porter is still an effective one. One should not consider it inefficient just by seeing the managerial application. Therefore, the later theories could not eclipse the theory of Michael Porter. Hence to conclude, the theory of Michael Porter stands relevant and not obsolete. Reference Magretta, J., 2013. Understanding Michael Porter: The essential guide to competition and strategy. Harvard business press. Mella, P., 2012. Systems thinking: intelligence in action (Vol. 2). Springer Science Business Media.