Question

  
Porter encourages firm’s not to be ‘stuck in the middle’. Critically discuss. 

Please provide insightful analysis and elaborate

Answer 1

Stuck in the middle in business strategy refers to stopping to work and perform due to some problem in the business operation or function or any other reason. There are sufficient numbers of researches which are conducted to avoid being stuck due to fear. According to Michael Porter the problems which are referred as middle must not be avoided, but suitable action to correct the problem and improve performance to eradicate problem must be done by firms.

Porter’s stuck in the middle theory suggests that profitability of any organization depends upon the market position and competitive advantage attained by the organization. Competitive advantage is attained through two strategies such as cost leadership or the product and service diversity. Porter indicated that organizations should find the expertise area and stick to that field. Focussing on the effectiveness is crucial. Porter also stated that any organization, when stuck in the middle for any reason will not be able to earn expected profit and can also suffer loss at times. The high margin business also gets loosened when stuck in the middle. Organizations which are stuck in the middle have poor organizational culture and there is conflict and demotivated work force.