A Porter analysis of the corn-genetics industry

摘要

It's called "industry on a page." It's also hailed as misleadingly simple and absolutely brilliant in the same breath. Starting in the late 1970s, Michael Porter of Harvard Business School (Boston, MA) devised a simple diagrammatic method to understand almost any complex industry. The concept is hypnotically simple. Those planning for the future should not be overwhelmed by grinding detail. Instead, by focusing on just five aspects of an industry, one can grasp the nature and degree of competition within that industry, as well as the potential for profit. Some advocate Porter's method as the first step to planning growth or to searching for new industries. Our Porter analysis of the corn-genetics industry may illustrate the brilliance—or absurdity—of this controversial method (Figure 1). Let's examine Porter's five forces.