The Irrelevance of Porter’s Five Forces for the B2B Software Industry

Re:The Irrelevance of Porter’s Five Forces for the B2B Softw... by diegof79 on Thursday April 14, 2022 @04:17PM (#31032706)

I compare the article with what I learned from the book “Understanding Michael Porter”, and I wonder if the article talks about the same thing:

> “Porter's aggressive modeling around "competition" has misguided organizations into becoming obsessed with destroying the competition.”

My understanding from Porter’s model is that competitiveness is defined by Product Value - Cost… a very simple concept that doesn’t involve “destroying the competition”.

A cheap computer manufacturer doesn’t compete with Apple, because the definition of product value depends on the audience.

Now I wonder who got it wrong, me, the book, or the article.

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Re:The Irrelevance of Porter’s Five Forces for the B2B Softw... by legostormtroopr on Friday April 15, 2022 @02:27AM (#31037145)

You aren't wrong, perhaps just not looking at the whole model.

A cheap computer may not be a 'competitor' to Apple, but it could be seen as a substitute - another of Porters 5 forces. So, how does Apple position themselves against cheaper computers in their market - by positioning themselves as a quality/luxury item.

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