The paper “ Benefits That Influence Firms to Use International Strategies, Key Drivers of Mergers and Acquisitions” is a cogent example of the assignment on management. Porter’ s work has contributed in a great way to the attainment of a sustainable competitive advantage. Based on the four frameworks, it is clear that the goal of a business is to attain a competitive advantage to its rivals. Through attaining a competitive advantage, a firm is able to earn higher profits compared to the competitors in the same industry. While attaining a competitive advantage is important, sustaining it is a hard task (Porter, 1985).
For a competitive advantage to be sustainable, it must be hard to duplicate or imitate by the competitors or the new firms entering the industry (Miller & Dess, 1993). Apple computers have been able to utilize strategic management to attain sustainable competitive advantage, hence important in illustrating this discussion. In his first book on competitive strategy, Porter looked at industry analysis. This is through the five forces of competitive position model (Porter, 2008). The five forces have the ability to impact industry profitability in a great way.
First, there is always a threat of entry where new firms join in. In a free market, a firm should be able to enter the market and exit freely. In this case, the profits are always on leverage. Despite this, some industries possess barriers to entry which makes it hard for a new firm to join. The characteristic helps in protecting the high-profit levels in the industry. When the industry is doing well, it is expected that new firms will join in and take advantage of the high profits.
This overtime erodes the industry profits and the firms start exiting the market hence restoring the market equilibrium. Barriers to entry occur when there is a patented technology, high brand loyalty, few distribution channels, and high production (Porter, 2008). According to the porters model, the threat of substitutes occurs when demand is impacted by the price change of the substitutes. Substitutes in this case refer to the products offered by other industries that can meet similar customer needs (Miller & Dess, 1993).
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