Replace the Porter Model?

A graphic illustrating the Splane Five Factors Model.

The factors are:
Number of potential customers, quantity purchased, sales price, costs,
and profits.

· The Porter model deals with intangibles. The Splane model deals with factors that can be measured and quantified. Because the Porter model deals in opinions, it’s safer from a job security standpoint. You can never be proven wrong in your analysis.

· The Porter model assumes all companies in the market space are providing similar product offerings. Is this ever true?

· The Porter model assumes companies are involved in a single industry. What about conglomerates? Think about what Microsoft did to combat Netscape.

· The Porter model is static, a snapshot in time. But everything is constantly changing.

Venture Capitalists like the Porter model. But the companies they back fail at an extraordinarily high rate. Should they consider changing the methods they use in making investment decisions?