From the course: Certification Prep: Professional in Human Resources (PHR)® (2018)

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Porter's Five Forces

Porter's Five Forces

From the course: Certification Prep: Professional in Human Resources (PHR)® (2018)

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Porter's Five Forces

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- When it comes to competition in business, I say bring it on. Competition forces companies to think creatively and introduce products and services that customers may not even know they need. Can you imagine living without your iPhone or Android? Yet it was only a decade ago, in 2007, that these devices were first introduced. As an HR pro, you should support senior leadership's desire to outpace the competition. You can do this by establishing policies. In particular, you want to promote an environment where employees can freely share and implement entrepreneurial ideas that financially benefit the organization. To do so, it's important for HR pros to understand the business environment from the standpoint of competition. A tool used to analyze competition in business is Porter's Five Forces Framework. The framework was developed by Michael Porter of Harvard University. He suggested that there are five forces that determine competitive intensity. They are threat of entrants, threat of…

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