Porter`s Models – are they still of relevance?

Abstract

The foundation for the modern strategy development was made in 1979 by Michael Porter. He developed several model like “Five Forces”, “General Strategies” or “Diamond of National Advantage”. Such models are well known around the world. Michael Porter was the founder of many other important management topics like competitive analysis or the development of competitive advantage. Our world today world should be much more complex as in 1979.Therefore we have to raise the question “Are the models which a “Harvard Professor” developed in a library more than 30 years ago still relevant in today’s business world? The “Five Forces Model” and the “Generic Strategies Model” according to Porter belong to the classics as such in strategic management. The following paper shall help to answer the question – if such models are still relevant. Therefore the initial focus is on the topic of strategy and strategy finding, followed by a detailed look at the two most important Porter Models, which are finally examined with regard to their relevance.