The Positioning School Essay Example | Topics and Well Written Essays - 2000 words

The Positioning School - Essay Example Through positioning school, the leaders of the organization will be in a position to know which business environment it is supposed to operate in and help in its growth by providing the necessary requirements (Demougin & Fluet, 2001). The market drive and the positional school of the organization shape the organization’s structure.When an organization gets into the market and doesn’t find the right market environment; there the possibility of it collapsing as it does not get to have its own structure it can operate through.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Many concepts in competitive advantage in an organizational environment can be described in the five forces identified and described by Porter (1996). First, Porter (1996) discussed the threat of entrants. New organizations face some barriers to entry. These barriers may include capital problems and customer problems. F. X. Pounds, Inc. leaders did not experience these barriers because the company had a wide set client base so they did not have capital problems (Mulcaster, 2009). As a result of providing quality services, F. X. Pounds, Inc. leaders obtained loyal customers.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The bargaining power of suppliers is the second force in Porter’s model (Porter, 1996). The strength of a supplier depends on the options has available to the customers. When there are many suppliers in the market and fewer customers, there emerges bargaining power. On the other hand, if there are few suppliers and many customers, bargaining power lies on the supplier's end.This bargaining power enhances tensions between the supplier and the customer. These companies; F. X. Pounds Inc, Miller Fuel, and A&F Group, in this case, study have many sources of suppliers. As a result, the suppliers have little bargaining power.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Bargaining power of customers is the third force discussed by Porter (1996) in his model.