Porter and Kotter Flashcards
competition
threat of new entries, threat if buyer power, threat of substitutes, threat of supplier power, rivalry among existing players
threat of new entries
are other, newer businesses that enter your market and offer the same or similar products as yours.
threat of buyer power
A BUYER is a force that can withhold or deny supply if another business else is offering a better or more desirable product.
threat of substitutes
SUBSTITUTES are threats/forces your Buyers can choose instead of you.
threat of suplier power
A SUPPLIER is a force of competition that the organization needs in order to make and deliver its products and services. has the competitive power to harm the organization by not providing what is needed, supplying it to a competitor
new entrants
in the same Sector AND the same or similar business as you: including non and for profit businesses.
They compete for your buyers, suppliers, audience/customers
existing rivals
Are in the same nonprofit Sector, and sometimes, but not necessarily, in the same business. Major institutions (Art Museum, Orchestra, Opera company, Playhouse Square, etc.)
The power and threat of existing rivals
Existing/established organizations in the same business or the same sector as yours – what we traditionally – and narrowly -think of as our ‘competition.’
Why do 70% of Major Change Efforts Fail
half measures, lack of leadership, lack of understanding of the holistic approach
change
happens constantly
major or system wide change
should happen rarely
Kotter’s model
Change prompted by external pressure or internal decline
External Pressure
Competition (from Rivals, Substitutes, Buyers or other of the Porter Forces of Competition)
Changes in the economic environment
Internal Pressure
Failed business model
the 8 steps of managing change
- establish urgency
- form a powerful coalition
- create a vision
- communicate the vision
- empower others
- plan for and create short term wins
- consolidate improvemnts
- institutionalize changes
