Episode 15 - The Limits of Strategy: A Critique of Porter's Five Forces

Michael Porter's Five Forces framework from Competitive Strategy is a cornerstone of business school education, but is it still a sufficient model for today's dynamic markets? In this Critique episode, we analyze this classic tool. Our hosts praise the framework for its enduring power in analyzing the structure and profitability of an industry. We acknowledge its brilliance in helping companies understand their competitive environment. However, we also offer a critique from a modern perspective. We question whether the model, which was designed for a more stable industrial economy, fully captures the dynamics of today's tech-driven world of network effects, platform businesses, and rapid disruption.