Abstract:

Despite the recognized scientific and pedagogical value of Porter’s model (1980) in terms of explaining the competitive strategies followed by the organizations with an apparent simplicity and internal coherence, subsequent research has shown that Porter's work was somewhat more confusing and contradictory than it seemed at first glance. In accordance with the aforementioned research, this paper aims to contribute to the study and understanding of such competitive strategies taking as a basis Porter's work, due to literature has similarly suggested that Porter's model, though insufficient for a complete understanding of the competitive strategies, should not be definitely ignored (and actually taught) as a consequence of its evident notoriety (c.f., Hendry, 1990).

However, although taking it as the foundations of the strategic research, in this paper we aim to improve it through the tool later proposed by Cliff Bowman: the strategic clock (Bowman & Faulkner, 1997). This tool, has helped to solve most of the problems and incoherencies of prior model by simply using the client’s point of view rather than the company’s one in its analysis, proposing eight strategic routes or positions and grouping them in four big groups. Therefore, this model is extremely useful to better explain the reality experienced by companies, as clients are indeed the first and only “judges” that will encounter a firm to test its market performance.

Specifically, in this work we present an example of its use through a numerical methodology based on four hypothetical firms with different internal limitations, external restrictions and movement constraints which will make the students understand the amazing world of the strategy, a dynamic process which will not show its final result until all competitors decide its movements.

Keywords:

Porter’s model, strategic clock, competitive strategies, dynamic process, numerical methodology.