Porter's Five Forces - Expanding Vs. Creating a new industry
Porter's Five Forces - Expanding Vs. Creating a new industry - https://stefano.tips/5Fs-NI
In this video, I share my take on the difference between rational and creative thinking.
Rational thinking (Industry analysis) helps strategists find new ways to expand the overall pool of profit in their industry, thereby gaining new positioning. The five forces analysis focuses on the underlying structural determinants for each of the forces at play in any industry.
This rational approach to business strategy, to me, is limited by logical thinking, which yields incremental results.
Creative thinking, on the other hand, focuses predominantly on the market; the role of the strategist here is to try to understand users and customers (unmet or unarticulated needs). The result of this creative approach is not incremental thinking (expanding an existing industry) but creating a new one.
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