WEEK 3 DISCUSSION Essay Example | Topics and Well Written Essays - 500 words

WEEK 3 DISCUSSION - Essay Example Porter is clear in explaining that because a company is profitable and effective at a given moment; that is not necessarily the benchmark of how a company will perform in the future. Like science’s description of life on Earth, the corporation must continually evolve and become more efficient as it maintains a keen eye on its competitors. Most economists like to use the Japanese as a business model when it comes to efficiency and profitability. True the country’s top businesses seized upon a time period where Western companies seemed to be asleep at the switch. Yet their competition has seized upon strategy and in a sense is beating the country’s businesses at their own game and it appears several decades later that the opposition is winning (Porter). In using the Japanese model, Harvard Business Review points out that in 1970 Komatsu was a tiny bulldozer company hardly known outside Japan and had a minute sales fraction of Caterpillar, the American giant in the industry. Fifteen years later, Komatsu had expanded to a $2.8 billion company with as many product lines as their mammoth opposition. As well, they had expanded into the emerging industrial robotics area (Hamel). Did Caterpillar concern themselves with Komatsu in 1970? It is doubtful but had they done a Strategic Intent analysis at the time, they may not have had such a tremendous slice of profit removed in 1985. In a sense, Albani Perfumes is the current Goliath in its market of Latin America. With current sales of $10 million, it is still a relatively small company but has managed to do well against its current competitors. Yet as discussed in Week 2, China is making headway into the market with knockoff perfumes. It could probably be argued that Albani would not win a trade war with the world’s fastest growing economy and this would be rated at zero, Strong Negative