The knowledege of market fully needed for the enterpreneur. They must know the market niche size, characteristics and response mechanism in order to serve the niche competitively (Charles Banfe,1991). The concepts that develop by Porter (five forces) describe how the environmental conditions and resources affect firm performance. This model assumes should develop heterogeneity in an industry or group whether it has short lived because the resources those firms to implement the strategies are highly mobile. Thus, imagine that the industry has a lot of homogeneous resources and mobility exists, other firms can also imitate and implement the same strategy that will improve their efficient and effectiveness in the same way. Probably, they can not sustain competitive advantage in those kind industries. Even though the firms try to be “first-mover” in homogenous industry, this condition will follow by other firms to possessed identical opportunity in the same way. There will be no “unique” firm within the same industry. Fortunately, Porter’s theory can be a guideline for firms which want to survive within the same industry suggested to focus on firm resource heterogeneity and immobility to reach sustained competitive advantage.
How the firm uses its resources within in an industry in this fierce competition might be the big issue now days, while many firms has equal capability to use its resources in effective and efficient way. That’s the challenge for enterpreneur to bring innovative idea into the market and they do find differences while other business immitator looks for simmilarities.
Sources:
Barney, Jay (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management 17(1), 99-120.
Banfe, Charles (1991). Enterpreneur From Zero To Hero. New York: Van Nostrand Reinhold.
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