Porter’s Four Corners Model – A Thorough Explanation

Porter's Four Corners Model – A Thorough Explanation

Introduction

There are a number of factors that shape the strategy of any organization. Organizations do not exist in vacuum and each organization has a complex network of environmental facets. The forces and conditions over which organizations have little control are known as organization’s environment. In general terms, there are a number of factors that influence the performance of your organization, such as customer expectations, corporate culture and values, financial goals, ability levels and so on. The same is the case with your competitors. When it comes predicting how they behave in future, it is important to look at the factors that influence their decisions. In this article, we are going to look at Porter’s Four Corner Model that helps you to analyze and predict the behavior of your competitor.

Origin and Objective of the Model

The Four Corner Model was published in Porter’s book, “Competitive Strategy”. The key objective of this model is to create a profile of a single competitor and predict how it will reach to the changes in other competitor’s behavior in the micro/macro environment. The analysis is made on the basis of 4 components – Drivers, Management Assumptions, Current Strategy and capabilities.

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