Evocurement

One of the greatest concerns of private sector is profit opportunity. Which factors determine the level of profit that a private company can have? In the book Competitive Advantage Creating and Sustaining Superior Performance, M. E. Porter gives 2 central questions relating this above issue: Question 1: What are the determinants of industries’ attractiveness for long-term profitability? Not all industries have the equal opportunities for gaining profitability. The inherent profitability of each industry is one of the most important influencing…

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According to Michael E. Porter, market and industry segmentation is an important part of firms’ competitive strategies. This technique is often used by companies who are trying to expand their market share and increase revenue. Interestingly, Stephen Carter, the author of L4M2 study guide, thinks that professional buyers can use the same technique to manage the supply market. However, not many purchasers grip this technique well. In this post, we introduce and explain the fundamentals of segmentation technique and how…

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