Competitive strategy decision making based on the five forces analysis with AHP/ANP approach
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Date
2013-08
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Technická Univerzita v Liberci
Technical university of Liberec, Czech Republic
Technical university of Liberec, Czech Republic
Abstract
The paper deals with a strategy making process on an example of high-tech firm. The strategy making process is the key task of any organization but especially in the fast changing environment of a high-tech firms it is crucial to also look ahead be able to differentiate the strategy approach. The strategic thinking is a structured decision making process that requires an assessment and evaluation of a large number of factors, criteria and data. When dealing with innovative approaches to decision making and strategic thinking it is necessary to follow a standardized structure. Contemporary knowledge society is determined by scattered information that can be accessed by a large number of subjects. This gives a great possibility to an independent subject to gather large intelligence about the business environment and all other related issues. This large quantity of information has to be structured in a hierarchical manner with interrelations. Even with this access to extensive intelligence the decision making process is always biased by some degree of subjectivity because it is made by people even with high competency. The paper presents an approach to strategic decision making process that uses well known Porter's Five Forces Analysis amplified by application of multiple attribute decision making decomposition methods Analytic Hierarchy Process and Analytic Network Process. The aim of the paper is to present both methods and compare the results of the competitive strategy decision making process using these methods also with the traditional approach. The first part of this paper includes an introduction to the strategic decision making and five forces analysis. The next part deals with multiple attribute decision making methods especially with the AHP and ANP with short review of up to date references. Following part is concerned with the methodology and general approach. The results are presented in the final part together with discussion and further applications.
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Subject(s)
ANP, Five Forces Analysis, AHP, multiple attribute decision making, strategic management, strategic decision making
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978-80-7372-953-0