Strategically Thinking And Haemonetics Corporation

My thoughts on strategic thinking at Haemonetics was based upon my review of an article by Michael E. Porter from Inc. Magazine online. It was written in September of 1991 and titled “Know you Place, Assessing the attractiveness of your industry and strategically positioning your company”. Michael E. Porter, a Harvard Business School Professor, is a leading authority on competitive strategy and has authored 16 books and over 100 articles on the subject. He is such a leading authority that Harvard University created the Institute for Strategy and Competitiveness to further his work and his ideas are taught in virtually every business school in the world. His article, Know Your Place, discussed several key points that every business must know to be competitive and survive. His points focused around analyzing your industry and strategic positioning within that industry.

Analyzing your industry is the process of understanding the attractiveness of the industry in regards to long term profitability. To understand how to access attractiveness Michael outlines five basic competitive forces that fit all industries. They are the character of the competition, threat of new c

Haemonetics has taken some steps to protect it’s share of the industry by trying to influence how the industry works. According to Michael Porter, if you think strategically, you can influence the structure of your industry in a positive way.

Our industry has involved the same players over the years because there are effective barriers to entry for new competition. As a medical device manufacturer there are regulations and business practices that make it hard for new entrants to join. Because our devices are classified as medical devices there are no cheap substitutes available so our customers do not have many options available to them.

ompetition, threat of substitute products and the bargaining power of suppliers and buyers. Each of these needs to be understood because the potential profit in any industry is determined by the balance of these forces.

Strategic positioning within an industry is the process of knowing what advantage you have over your competitors and narrowing the scope of your market enough to take full advantage. Michael Porter explains that competitive advantage comes in either the form of price or service. You can provide the same exact product as someone else however if you sell it cheaper you have an advantage. On the service side, you may provide a more expensive product than your competitor because you also prove more value,

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