The five competitive forces of Michael Porter

Business strategists’ primary function in companies is their ability to understand competition and create plans to cope with such. The five competitive forces Michael Porter discusses in his article are the threat of new or potential entrants, negotiating power of suppliers, bartering power of customers, threat of substitute products and/ or services and competition among direct rivals.Advertising We will write a custom essay sample on The five competitive forces of Michael Porter specifically for you for only $16.05 $11/page Learn More An industry’s structure is characterized by the comprehensive competition of the five forces. These forces also outline the temperament of aggressive interaction within an industry. It is important for company strategists to have a thorough understanding of the five forces in order for them to plan out strategies for the company. In understanding the five competitive forces, the company will be able to †Å"reveal the roots of an industry’s profitability and provide framework for anticipating and influencing competition and profitability† (Porter, 2008). Understanding a given industry’s structure is also essential in the positioning of a company. The industry structure determines the strength of the five forces. Such is characterized by the economy and technological advancement (Porter, 2008). The five forces which shape strategy differ from industry to industry with regards to their configuration. Evaluating and analyzing the five forces may enable companies to understand the challenges present in the industry. The first force is the threat of new players in the industry. The presence of new entrants affects the industry’s prices, costs and rate of investments. â€Å"New entrants bring new capacity and desire to gain market share. This force puts a cap on the profit potential of an industry† (Porter, 2008). Entry barriers and the reactions of incumb ents determine the competition and profitability of an industry. Industry incumbents have an advantage through the seven entry barriers which are supply-side economies of scale, demand-side benefits of scale, capital requirements, incumbency advantages independent of size, unequal access to distribution channels and restrictive government policy. In planning out company strategies, managers must take into consideration the relationship of entry barriers and potential players’ capabilities. The second force which affects strategy is the power of suppliers where â€Å"they try to gain more value for themselves by charging higher prices, limiting quality or services or shifting costs to industry participants† (Porter, 2008).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Another force is the power of buyers where customers tend to coerce sellers in lowering product prices, deman ding superior quality and services. Customers can influence the increase of costs at the expense of the profitability of an industry. The fourth force is the threat of substitutes. Substitutes can threaten the profitability of an industry for they can act as an alternative when a customers are not satisfied with a given product. Lastly, the rivalry among existing competitors is the fifth force which shapes competition. These rivalries can be manifested in different forms such as price competition, product innovations, marketing and advertising campaigns and improvements of services. Profitability of industries is limited when rivalry among industry players is high. â€Å"The degree to which rivalry drives down an industry’s profit potential depends on the intensity which companies compete and the basis on which they compete† (Porter, 2008). An industry’s profit potential is determined by the industry structure. Understanding the five forces enables companies to regulate how economic value is created in the industry. Strategists must consider the five forces in keeping the overall industry structure in mind and must focus on structural conditions. Aside from the five forces, strategists must also take into consideration factors which affect industries namely the growth rate of the industry, technology and innovation, government policies and complementary products and services. An evaluation of an industry’s forces and factors may provide an understanding that industry structure constantly undergoes adjustments and such can change sporadically. Changes in the industry can originate from within the industry or it can be attributed to factors outside the industry. The outcomes of the changes in the industry can be an advantage or a disadvantage. The importance of understanding the five factors enables strategists to identify the framework of the industry thus they can expect such developments and anticipate the impacts of such changes i n the industry’s profitability. Such changes may include the shifting threat of new entry, changing supplier or buyer power, shifting threat of substitution and new bases of rivalry.Advertising We will write a custom essay sample on The five competitive forces of Michael Porter specifically for you for only $16.05 $11/page Learn More The thorough understanding of forces, factors and changes in the industry allows strategists to plan out how companies should position themselves, exploit industry change, shape industry structure and define the industry. In developing strategy, it is essential to have a clear understanding of the forces which shape the competition of a given industry. The five forces expose the profitability of an industry and a thorough understanding of such together with the factors affecting the industry as well as the changes brought about justify such profitability. The five forces expose the most important features of an indus try’s competitive environment. A detailed understanding of the forces enables strategists to determine the standard strengths and weaknesses of a company in a given industry. The knowledge of industry structure helps managers shape strategies for companies to compete in the market. Works Cited Porter, Michael. â€Å"The Five Competitive Forces that Shape Strategy.† Harvard Business Review January (2008): 78 – 93. Web. This essay on The five competitive forces of Michael Porter was written and submitted by user Kylah C. to help you with your own studies. 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What You Need to Know About Commedia DellArte

What You Need to Know About Commedia Dell'Arte Commedia dellarte, also known as Italian comedy, was a humorous theatrical presentation performed by professional actors who traveled in troupes throughout Italy in the 16th century. Performances took place on temporary stages, mostly on city streets, but occasionally even in court venues. The better troupes - notably Gelosi, Confidenti, and Fedeli - performed in palaces and became internationally famous once they traveled abroad. Music, dance, witty dialogue, and all kinds of trickery contributed to the comic effects. Subsequently, the art form spread throughout Europe, with many of its elements persisting even into the modern theater. Given the vast number of  Italian dialects, how would a touring company make itself understood? Apparently, there was no attempt made to change the performances dialect from region to region. Even when a local company performed, much of the dialogue would not have been understood. Regardless of region, the oft-used character  il Capitano  would have spoken in Spanish,  il Dottore  in Bolognese, and  lArlecchino  in utter gibberish. The focus was placed on physical business, rather than spoken text. Influence The impact of  commedia dell’arte  on European drama can be seen in French pantomime and the English harlequinade. The ensemble companies generally performed in Italy, although a company called the  comà ©die–italienne  was established in Paris in 1661. The  commedia dell’arte  survived the early 18th century only by means of its vast influence on written dramatic forms. Props There were no elaborate sets in  commedia. Staging, for example, was minimalistic, with rarely anything more than one market or street scene, and the stages were frequently temporary outdoor structures. Instead, great use was made of props including animals, food, furniture, watering devices, and weapons. The character  Arlecchino  bore two sticks tied together, which made a loud noise on impact. This gave birth to the word slapstick. Improvisation In spite of its outwardly anarchic spirit, commedia dellarte  was a highly disciplined art requiring both virtuosity and a strong sense of ensemble playing. The unique talent of  commedia  actors was to improvise comedy around a pre-established scenario. Throughout the act, they responded to each other, or to the audiences reaction, and made use of  lazzi  (special rehearsed routines that could be inserted into the plays at convenient points to heighten the comedy), musical numbers, and impromptu dialogue to vary the happenings on stage. Physical Theater Masks forced actors to project their characters emotions through the body. Leaps, tumbles, stock gags (burle  and  lazzi), obscene gestures, and slapstick antics were incorporated into their acts. Stock Characters The actors of the  commedia  represented fixed social types. These types included  tipi fissi, for example, foolish old men, devious servants, or military officers full of false bravado. Characters such as Pantalone (the miserly Venetian merchant), Dottore Gratiano (the pedant from Bologna), or Arlecchino (the mischievous servant from Bergamo), began as satires on Italian types and became the archetypes of many of the favorite characters of 17th- and 18th-century European theatre. Arlecchino  was the most famous. He was an acrobat, a wit, childlike, and amorous. He wore a cat-like mask and motley-colored clothes and carried a bat or wooden sword.Brighella  was  Arlecchinos  crony. He was more roguish and sophisticated, a cowardly villain who would do anything for money.Il Capitano  (the captain) was a caricature of the professional soldier - bold, swaggering, and cowardly.Il Dottore  (the doctor) was a caricature of learning who was pompous and fraudulent.Pantalone  was a caricature of the Venetian merchant, rich and retired, mean and miserly, with a young wife or an adventurous daughter.Pedrolino  was a white-faced, moonstruck dreamer and the forerunner of the modern clown.Pulcinella, as seen in the  English Punch and Judy shows, was a dwarfish humpback with a crooked nose. He was a cruel bachelor who chased pretty girls.Scarramuccia, dressed in black and carrying a pointed sword, was the Robin Hood of his day.The handsome  Inamorato  ( the lover) went by many names. He wore no mask and had to be eloquent in order to perform speeches of love. The  Inamorata  was his female counterpart; Isabella Andreini was the most famous. Her servant, usually called  Columbina, was the beloved of Harlequin. Witty, bright, and given to intrigue, she developed into such characters as Harlequine and Pierrette.La Ruffiana  was an old woman, either the mother or a village gossip who thwarted the lovers.Cantarina  and  Ballerina  often took part in the comedy, but for the most part, their job was to sing, dance, or play music. There were many other minor characters, some of which were associated with a particular region of Italy, such as  Peppe Nappa  (Sicily),  Gianduia  (Turin),  Stenterello  (Tuscany),  Rugantino  (Rome), and  Meneghino  (Milan). Costumes The audience was able to pick up on the type of person actors were representing through each characters dress. For elaboration, loose-fitting garments alternated with very tight, and jarring color contrasts opposed monochrome outfits. Except for the inamorato, males would identify themselves with character-specific costumes and half-masks. The  zanni  (precursor to clown), such Arlecchino, for example, would be immediately recognizable because of his black mask and patchwork costume. While the inamorato and the female characters wore neither masks nor costumes unique to that personage, certain information could still be derived from their clothing. Audiences knew what members of the various social classes typically wore, and also expected certain colors to represent certain emotional states. Masks All the fixed character types, the figures of fun or satire, wore colored leather masks. Their opposites, typically pairs of young lovers around whom the stories revolved, had no need for such devices. In modern Italian  handcrafted theater, masks  are still created in the ancient tradition of  carnacialesca. Music The inclusion of music and dance into  commedia  performance required that all actors have these skills. Frequently at the end of a piece, even the audience joined in on the merrymaking.