Porter’s Five Forces Analysis: Revise the Classics

Michael E. Porter of Harvard Business School developed Porter’s Five Forces Analysis in 1979 as a framework for industry analysis and strategic development. The goal of the model is to derive the five forces that determine the competitive intensity and, thus, the attractiveness of a market. If profitability is high across the market, it’s attractive; if the combination of forces drives profitability of the market or industry down, it is deemed “unattractive”.

Porter refers to these forces as micro environmental, as they are forces close to the company and which affect it’s ability to serve its customers and make a profit. In the model, should a change occur in any of the forces, the company must re-evaluate the marketplace. Also, it is important to note that the overall industry attractiveness does not mean all companies in it will yield the same profitability, as specific business models within them might allow individual companies to deliver above average profitability.

The model is nice to assess the attractiveness of a market we’re in or planning to enter by stating under each epigraph the reality of the micro environment. The model’s graphic representation is as follows:

What Russian Workers Want

According to a survey made by the company Kelly Services, about 65% of Russian office workers are ready to change their job. 84% would be glad to accept an offer to work with another employer since they “do not like the tense atmosphere at their company and the unstable position of their employer”.

1/15 office workers have quit their jobs on their own accord as a result of bad relations with colleagues and top managers. About 41% of workers are ready to find new jobs due to their company’s instability. During the crisis, the work load of 72% of office employees changed; about 38% started to work less and 44% more.

According to the survey:

• over 50% of Russians would like to work at “an international company”
• 22,5% at a “young developing international company”
• 10,3% at a “Russian company with high potential”
• 8,1% at a “Russian state-run company”, and
• 7,7% at a “Russian private company”

A total of 2.400 office employees all over Russia were polled. This news item comes from Trud, edition of 22th June 2009.

In the picture, Metro Moscow escalators by Sansculotte licensed under Creative Commons Attribution Sharealike 3.0

Verano (Summer) a poem by Manuel Machado

Frutales Fruit trees
cargados, charged,
Dorados Golden
trigales… cornfields…

Cristales Glass
ahumados. smoked.
Quemados Burned
jarales… rockroses…

Umbría, Shade,
sequía, draught,
solano… easterly wind…

Paleta Palette
completa complete
verano. summer.

Manuel Machado (Seville, 1874 – Madrid 1947)
Spanish poet and playwright of the Generation of ‘98

The Paper Video Pig

Last night I was looking for information on how to descale a kettle. I found a cool site with all things handy for life. Actually, the site’s slogan is “Get Good at Life”. The place is called Videojug and they basically show you videos on how to do stuff to fix some everyday problems and many other things (like How to Make an Origami Pig or an interview with a specialist on What is Bronchitis).

What I liked was how they are selling video ads. In the screen-shot I have a video about something as bizarre as origami pig making and it has an overlay on the bottom part of the screen. I also find the content is extremely suitable for this format (videos are well executed, pruned and edited, useful and purposeful (for the most part, forgive my examples). So, quality is reliable and acceptable which, for such a utility service, is critical.

As it’s a “solving-daily-issues-by-video-snaps-for-the-masses” kind of place, its content perfectly lends itself for click based non-intrusive video advertising formats.

A close call: Yeşilyurt Camii

Salah is the name of the Islamic ritual prayer. Muslims are summoned to Salah by the muezzin from the mosque; this is done by chanting Athan, the official call to prayer, which is performed 5 times per day. Here is a transliteration from the Arabic from a source including a description on performing the ritual.

Allaahu Akbar (4x)
God is great
Ashhadu Allah ilaaha illa-Lah (2x)
I bear witness that there is none worthy of worship except God
Ash Hadu anna Muhamadar rasuulullah (2x)
I bear witness that Muhammad is the Messenger of God
Hayya’ alas Salaah (2x)
Come to prayer
Hayya’ ala Falaah (2x)
Come to felicity
A-Salaatu Khayrun Mina-Naum (2x) [Fajr only]
Prayer is better than sleep
Qad qaamitis Salaah (2x) [Iqama only - not recited in Athan]
Our prayers are now ready
Allaahu Akbar (2x)
God is great
Laa ilaaha illa-Lah
There is none worthy of worship except God

Sunni and Shi’a versions of Athan differ. In the map our neighborhood mosque, also referred to in the title of the post.
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The Facebook Samovar

Last week Yuri Milner picked up 1.96 pct of Facebook for US$200 M, putting the company’s value at about US$10 B. After doing this, he made the following statement to the media:

We are seeing a fundamental trend on this in Russia – all our businesses are profitable and we believe that the consumption of advertising online will change. Google started this revolution and social networks will continue it. Social networks will allow advertising to be much more targeted.

Milner is CEO of DST (Digital Sky Technologies) with interests in Russia’s e-mail portal Mail.ru, social networks Odnoklassniki.ru and Vkontakte.ru and dating site Mamba, along with others. Russia’s internet audience is Europe’s 4th after Germany, Britain and France, says comscore.

Anyone for comments?