Medical Tourism In India: A Proposal

checkup checkup examination exam touristry In India A Proposal aesculapian touristry- the student lodgingovation of pop offing far and wide for better medical examination give-and- bundle is not a novel idea, only the term. The internationalization of the tightness sustenance sector and the massive de humannessd for low approach-high quality treatment in recent convictions has caught the attention of many ontogeny countries that require the commensurate resources and potential to meet these demands. The profitability and the lucrative character of the medical touristry business has now put this trade, high on the agenda of both the Indian government and the private wellness c be returnrs.Today, medical touristry has plump a commonplace practice with a coarse result of people well-nigh the world since usual constraints equivalent language, finance, difficulties in world(prenominal) travel and fear of the un cognize atomic number 18 no longer acting as ba rriers to the tourists who seek medical treatment in foreign countries. Countries identical India, Singapore, Malaysia and so forth brace demonstrable strategies specific inbuiltlyy with the determination of tackling much(prenominal) issues and rendering themselves as the i bang medical touristry endings.Although India is emerging as the tempestuous-spot medical touristry destinations within the Asia-Pacific and opposite regions of the world, it seems to be facing tough tilt from otherwise big players of this manufacturing who lead projected an equ al iodiny legal written re sort for themselves and be reaping the benefits of this business. therefore, it is imperative for India to persistingly rethink and reform its marketing strategies to crystalize matched repairment and development its market sh be in the health c ar sector.It is an undisputed fact that medical tourism is a speedily growing pains and creating inroads into the Indian economy. thither be a large proceeds of stomach up holders in this intentness in South einsteinium Asia including countries like Singapore and Malaysia. There atomic number 18 various marketing strategies cosmos use for propagating this fabrication. My endeavor would be to seek the gaps that exist and suggest bettering action.Being from the medical fraternity and having had the opportunity to treat a number of overseas patients, the concept of medical tourism has generated a great deal of interest in me. I believe that there are rough deficiencies in the marketing strategies for health tourism in India that need to be looked into and improvised. The beat back of my question would be to propose marketing strategies that would boost the Indian aesculapian Tourism for the future.3. Preliminary review of literatureThere are three sections of the literature review-i) Historical aspects- inception and evolutionii) health check tourism in India- the fork up scenarioiii) Probable concerns and pitfalls of the Indian medical tourism industry.i) Historical aspects- inception and evolutionThe concept of constructing health daedales around vitriolic springs goes back to as old as the Sumerian civilization (circa 4000BC) where health care facilities comprised of grand elevated buildings with flowing pools. The hill tribes of Switzerland of the area instantly know as St. Moritz, during the Bronze Age (circa 2000 BC) recognized the benefits of bathing and alcoholism in iron-rich mineral springs. The discovery of bronze drinking cups used by them in thermal springs in Germany and France possibly signifies health pilgrimages within these cultures.As per written historical accounts, bathing and meliorate mazyes were erected around therapeutic springs in Mesopotamia, India, Greece and China. The concept of medical tourism emanated as trips to sacred baths and hot springs. However, it is the Grecians who have to be given the credit for laying the mental institutions for medi cal tourism net snuff its.Greek medical tourism.Asclepius was considered to be the god of medicine according to Greek mythology. In his honor, Asclepian heal temples had been constructed throughout Greece by the 4th Century BC. These temples were established snuggle the mineral springs which were considered to be the prime wellnessful Locations. The system of rules of medical tourism during this period was as follows-Patients and their attendants came to Asclepia temples seeking treatment for various ailments. At Epidaurus, the port temple, treatment embroild gymnasia, palaestra (exercise area), bathing springs and a dream temple. There was a retinue of priests, caretakers and stretcher carriers who attended to the patients before they were granted ut roughly ap setment with the mighty priest. Patients make sacrificial put forwardings according to their status- the poor remaining shoes Alexander the Great left his breastplate.Roman Medical Tourism.The hallmark of ancient Ro man medical tourism c fancyed around hot water baths called Thermae. These centers of medical treatment were posh establishments. Some of these centers comprised of art encrustationeries multitude halls, theatres and virtually(prenominal)times sport stadia. Because of the active trade with Asia, the Roman baths extended medical tourism activities like Chinese medicine, Ayurvedic massage and various aspects of Buddhist sacred healing at some Roman Thermae.japanese Medical Tourism-Onsen.ONSEN subject matter hot mineral springs in Japanese. Medical tourism in Japan centered around these hot mineral springs which were enriched by surrounding volcanic soil. It attracted a variety of people including hunters, fishermen, farmers and warriors. It was believed that these mineral springs were arrangeive in alleviating pain, healing wounds and recuperation. A thousand years later, this form of medical tourism in Japan is soundless an current phenomenon.Indian Medical Tourism.India h as been the home indicate of alternative system of medicine for the past 5000 years. Aspects of medical tourism involve yoga, eastern cultural, spiritual and medicinal compilation with meditation thrown in. India has been a Mecca for alternative medicine practitioners. A new boost was given to health tourism in the 1960s with the New Age movement in the US. This New Age movement seeks Universal Truth and the attainment of the highest respective(prenominal) human potential and is characterized by an individual approach to spiritual practices and philosophies and the rejection of spectral doctrine and dogma. With this movement, India had once again become the most sought later on destination for thousands of western pilgrims. Indias deep commitment to health care al-Qaeda and technology furthered the mass influx of medical tourists. India is now one of the worlds oldest medical tourism destinations and has gained generality over the years over other destinations.European Medic al Tourism.European medical tourism came into existence with the rediscovery of the Roman baths in the sixteenth century. With the rediscovery of the Roman baths, Baden Baden , Aachen and most notably Bath, became spa towns. By the 1720s the spa towns came to be frequented by Aristocrats and gentlemen of leisure from other parts of Europe and even royal stag patronage. Michel Eyquem de Montaigne, French royal inventor of the essay was the most noteworthy medical tourist of this time. He traversed the continent for 9 years for the cure of his gall bladder problem. He is widely believed to be the father of luxury travel and has helped to write one of the earliest documented spa guides for European tourists.Health Tourism-New world.English and Dutch colonists in the 1600s, constructed log cabins near mineral springs in the newly discovered Americas. By 19th century the American reformists made it a habit to travel to remote Western springs that were rich in medicinal properties.Today, there are no physical, frugalal and cultural barriers that sort out nations from one another. Coupled with the flattening global economy, ease of international travel and easygoing trade policies has opened the vistas of medical tourism destinations around the globe. This has made affordable health care availability to patients who find it difficult or inconceivable to door such health care facilities in their own countries. grand health care bes are driving the patients to medical tourism destinations like Thailand and India for sophisticated procedures at a fraction of the equipment casualty. Long time lag periods for medical treatment is another factor that is making patients seek treatment abroad. Also, lack of comprehensive medical insurance has attracted thousands of patients to seek treatment abroad.Medical tourism today has become a global phenomenon with many countries expanding their offerings, including singular tourism opportunities for example South Africa is promoting medical safari in a big way.ii.) MEDICAL TOURISM IN INDIA-the present scenarioMedical Tourism India or Health Tourism India is a developing concept that has gained ugly popularity and is attracting people from all over the world for their medical and relaxation needs. The treatments most commonly include knee transplant, cosmetic treatment, dental treatment and cardiac surgery. India is now a favorable medical tourism destination as its infrastructure and technology are at par with USA, UK and Europe, enabling it to provide treatment centers and hospitals that are trounce in the world with world path facilities. These factors coupled with call downs to some of the most alluring and awe-inspiring places of the world have brought about the merging of tourism with medication giving rise to the concept of Medical Tourism.India is promoting health tourism through depicting the high-tech healing of its private healthcare sector. The Indian government is marketing the concep t of travel to India for cheaper and world-class medical facilities to foreigners, with the intention of encouraging the growing Indian medical tourism industry. The policy of the Indian government to merge medical expertness and tourism was announced during the 2003-04 budgets when the finance minister Jaswant Singh propounded India to become a orbicular Health Destination. According to a study mannersed by Confederation of Indian Industry (CII), the field is so lucrative that it has the potential to become a $2.3 billion business by 2012. Around 150,000 foreigners visited India for treatment during 2004 and since then, this number has increase by 15% every year.In recent times, India has emerged as the world(prenominal) Health Destination collectable to the following advantages1. Medical dish outs are provided at almost 30% turn away cost than the Western countries and are the cheapest in South-east Asia.2. India has a large population of doctors and paramedical faculty wh o have good knowledge of spoken English. Therefore language is a major comfort factor that attracts so many foreign tourists to visit for the mapping of medical and health tourism making it easier for overseas patients to bear on well to Indian doctors.3. Indian doctors expertise in various operative procedures including cardiac surgeries, liver transplants, orthopedic surgeries and other medical treatments.4. Indian hospitals offer a wide array of high quality treatment procedures comprising of adjunction replacements, cardiothoracic surgery, dental care, cosmetic treatments and more(prenominal).iii) Probable concerns and pitfalls of Indian medical tourism industryReview of literature suggests the following concerns that need attention if one has to augment and boost the medical tourism sector.Concerns of the consumersSome of the consumers tactile property that India is unhygienic, polluted and bureaucratic. There is no appropriate accreditation system for the hospitals. Conce rns about medical insurance which is underdeveloped, brusque and has few global players. overseas companies refuse reimbursements. There are excessively concerns about terrorism, communal unrest and bad connectivity between cities and towns. While some of these concerns are genuine, most of them are mere perceptions.Concerns of the promotersFrom the promoters point of view, the concerns that have emerged spread out around lack of regulations concerning ethics and systemic provide, lack of infrastructure deficiencies like electricity, power supply and water, inadequate land reforms, taxation anomalies, funding constraints, execution of instrument lacunae and bureaucratic bottlenecks.4. RESEARCH QUESTIONS AND OBJECTIVES.India seems to be an emerging medical tourism destination offering great opportunities in terms of creating new jobs and generating sources of tax income for the Indian economy. It is therefore imperative that the impetus gained so far should not be jeopardized and measures should be adopted to improve the present situation by developing and implementing new strategies. seek questions1. What is the present state of Indian medical tourism? indicating assessment of the present situation.2. What are the drawbacks or felt impediments of the medical tourism trade sector? indicating an analytical structuring of the entropy.3. What are the ways to improve medical tourism in India through better marketing strategies? an assessment of the lacunae in the existing marketing strategies.4. Is the government doing enough to support the medical tourism industry? an assessment of the governmental leaning towards the industry.Research objectives1. To develop prosaic marketing strategies for health care institutions involved in medical tourism in India.2. To assess the impact of the government action on the present marketing strategies for foreign patients.3. To make a marketing plan lesson for the Health tourism industry in India5. RESEARCH PLANRese arch perspectiveMy research approach is base upon the words of the renowned anthropologist Clifford Geertz man is an animal suspended in webs of significance he himself has spun. I take culture to be these webs, and the analytic thinking of it is not to be an experimental learning in search of law but an interpretive one inn search of meaning (Jewell,S.2010). It therefore forms an interpretivist approach. Since the medical tourism industry is a business and way perspective, any research into this field would fall into the gamut of plus and interpretivist approaches. My research is essentially a qualitative one since my info allurement is mainly secondary in nature. Furthermore, my research is theory forming where in I shall be development the inductive approach to analyze the data. My research too involves the assessment of factors of concern that are think to the health tourism industry of India. It would be my effort to sift out the relevant factors and analyze them from the point of view of developing marketing strategies.Research approach patternThe approach that best answers my research questions fits into the modified cross sectional send off. Here, the research mark revolves around the pile upion of data that is occurring naturally over a designated period. My research design as well as involves mainly three-figure data and some qualitative data too. My research is establish upon observation and document abstract. The cross sectional design also gives information on aspects of who, what, how many, where, and the how and why.Data entreaty methodsI shall be collecting my data through depth psychology of secondary data. I also intend to submit questionnaires to the stakeholders and the major players of the medical tourism in India with the aim of seeking relevant data that would help me in answering my research questions and fulfill my research objectives.Secondary data the secondary data would be calm through the followingWritten materi als- various websites, websites of homepages of key players, magazines and journals, newss and publications. I would also be looking for government publications, laws and acts related to this subject.Non-written materials- media, television etc.Most of the data from outside the individual organisation go forth brook information about the medical tourism industry. While, data that is collected from the organizational websites would give information on how things are done within the organization and their modus operandi.ii. Questionnaires I ordain be sending the questionnaires to all the major players in the Indian medical tourism industry. The questionnaires will be used to get data for decimal analysis in order to assess the functioning of various medical tourism facilities in India. The idea of using questionnaires is that a large quantity of data can be made visible(prenominal) covering a wide range of database for quantitative analysis. A good amount of objectivity can be inembodiedd and the results would be of sensible and reliable nature.Analysis of dataHaving collected all the qualitative and quantitative data, I would subject it to appropriate analysis and apply relevant statistical tests of significance to ensure that the results are binding, reliable and give a liable level of generalisabilty. I aim to deduce the relevant marketing strategies world used and to assess their impact on the industry. I shall be presenting the canvass data in the form pie diagrams, bar charts and other forms of statistical presentations.LIMITATIONS validness and reliabilitySince my data is mainly secondary in nature it is presumed that global players in the me dical tourism industry would not displace false data to propagate their business chances. From this point of view my data would be valid as well as reliable. As my data is being collected from internet, websites of various stake holders, magazines etc. I am confident that stake holders at this level of global agonisticness would not be putting up false data or information for promotional activities that could jeopardize their reputation. However, the limitations of validity and reliability I foresee to come across would be from the questionnaires I would be sending to the stake holders. The disadvantage I feel I would face using the questionnaires is that some people whitethorn not respond, may take a long time for returning back and the response rate cannot be predicted. However despite these limitations, I assume to be able to generate valid information and data for quantitative analysis. I shall be sending these questionnaires to the concerned stakeholders through their homepages and their websites and try and open fire as much response as possible from them.GeneralisabiltyMy research design is based upon the study of an industry and does not impinge upon a expression study research. All factors being studied can be considered as offshoots of a wiz industry. For e.g. t he legislation aspects would be covering the entire industry and not a single institution or a hospital. Secondly, my aim is to give broad based generalized guide lines on the recommendations for amend medical tourism in India. My attempt therefore would be to collect and analyze data from where generalisabilty can be achieved.ETHICAL CONSIDERATIONSI will abide by the Cov debut University BES ethical guidelines. I will conduct my research honestly and present all the data accurately. I will get the low risk approval form signed by my supervisor to get his approval before I begin my research.I shall take all precaution to ensure and respect the rights and integrity of subjects if any.I shall treat all the data confidentially and would ensure that it would not be used for any other purpose other than that intended.Since my data collection is mainly secondary in nature, my research work is considered to be a low risk from the ethical point of view. I shall keep all the raw information on ethics and the data collected for audit purposes.PLAGIARISMI will paraphrase reference and cite the sources used by me, to acknowledge the work of others and avoid any sort of plagiarism.Michael porters beer Impact of strategical Management TheoryMichael doorman Impact of strategical Management TheoryThe field of strategic guidance is complex and multi-faceted. strategical management has been define in many different ways. The basic teaching of the put School is that strategies are generic wine wine specifys in a competitive food market and are based on analysis by a consulting staunch. Michael porter, indisputably one of the most authoritative thinkers on management and competitiveness in the world laid the groundwork for strategic positioning in 1980 with his book Competitive schema in which he presented his Five Forces computer simulation. His 1985, work, Competitive improvement, depict his activity-based view and introduced his Value mountain kitchen stove stick. Since the publication of these influential works, their popularity has conductd re redressable to their general applicability and ease of use.Keywords Michael doorman, strategic management, Five Forces Model, Value filament Model, usher, Positioning School.The Influence of Michael PorterThe field of strategic management is complex and multi-faceted. Numerous definitions have been proposed in an attempt to prescribe the essential elements of management strategy and to discover a methodology to satisfy once and for all the needs of managers seeking to maximize their organizations potential in the dog-eat-dog business world.Strategic management has been defined in many different ways based on the organizations mission, policies, sector, structure, objectives, strengths, weaknesses, opportunities, threats, key advantage factors or decisions, capabilities, planning, implementation, and sustainable competitive advantage (Sadler, 2003). Generally, strategic management i s the means by which organizational managers seek to lard the success of their businesses via a series of competitive maneuvers. Such maneuvers may be taken with regard to the external environment in which the sure is before long operating or in relation to the organizations inner capabilities (or inabilities) (Sadler, 2003). Mintzberg, Ahlstrand and Lampel (as cited in Sadler, 2003, p. 15) developed a method of organizing these numerous schools of thought into three major groups designate the prescriptive, Descriptive, and configurational Schools.The Descriptive group consists of those schools which seek to spot strategic management in terms of how it is formed in practice. The Configurational group encompasses one single school of thought which has two facets, the first seeking to describe the organizations state and context, and the second endeavoring to depict the strategy-making process. The Prescriptive Group is composed of those schools which venture to define strategic management in terms of how it should be formulated, as opposed to how it is formed in practice (see Descriptive Schools above). Within the Prescriptive group reside the design, planning, and positioning schools.The design school seeks to define strategic management as a conceptual process, and the most recent grammatical construction of this approach is the SWOT (strengths, weaknesses, opportunities, and threats) Analysis, developed by Ken Andrews in the previous(predicate) 70s. SWOT analysis aims to analyze the firm in terms of internal factors strengths and weaknesses, and external environmental factors opportunities and threats, in order to gain a competitive advantage. The planning school, on the other hand, centrees primarily on the future and has as its principal goal the formulation of decisions and actions that will guide the organizations actions and define its purpose. Michael Porters creative and best-known work, Competitive Strategy, laid the foundation of the pos itioning school. The basic tenet of this school is that strategies are generic positions in a competitive marketplace and are based on analysis by a consulting firm.A renowned business management theorist and commonly recognized as the father of modern management theory, Porter is a respected prof holding the prestigious Bishop William Lawrence University Professorship at Harvard Business School. He is a prolific author since 1976, he has written some 18 books and more than 125 articles on competition and strategy. Porter has advised management in numerous U.S. and international companies and governments worldwide and has won many honors and awards for his work in economics and strategic management theory. Michael Porter is indisputably one of the most influential thinkers on management and competitiveness in the world.Michael Porters TheoriesPorter is best known for the prescient theories illuminated in his 1980 work Competitive Strategy Techniques for Analyzing Industries and Comp etitors. The hallmark of Porters works, Competitive Strategy presented Porters quintuple forces pose, atomic number 23 elements that make an industrys profitability, and his generic strategies which are intended to counter those forces. In his follow-up piece, The Competitive Advantage Creating and Sustaining overlord Performance, published in 1985, Porter developed his Value scope Model, a framework for activity-based competitive analysis of a firm.Porters Five Forces ModelPorters five forces are classified as industry-level (vice organizational-level) determinants of long-term profitability in an industry. These economic and technical symptomatics are said to be foundational, key factors to industry success and affect such critical industry elements as prices, the degree of investment funds necessary for competitiveness, market share, potential profits, and profit margins, and industry volume (Childress Kirkwood, 2006). The five forces are industry contenders, pressure fr om moderation returns, talk terms power of suppliers, negotiate power of buyers, and potential entrants. These five forces acting in unison comprise the competitive environment in which the firm essential operate.The nature of competition within the industry is affected by factors such as the sizing of competitors the number of competitors, changes in demand for yields, asset specificity, the strength of exit barriers and competitor variety and is generally considered to be the most powerful force. Competitive maneuver engaged by one firm may affect the entire industry (Mayo, Grigoroudis and Zopoundis, 2006).Pressure from reliever products affects the industry by imposing an imitation price ceiling. Decreases in customer switching costs and increases in the price of substitute products are causes of competitive pressure. The threat of substitutes varies inversely to the price of substitute products and consumers switching costs (Mayo, Grigoroudis and Zopoundis, 2006).The ba rgaining power of suppliers affects competition particularly when there are many, limited substitutes for raw materials exist, or when switching costs increase. When suppliers molest prices, or reduce prices or services or the quality of goods or services, competition intensifies. When suppliers reduce quality or services or increase prices, competition increases (Mayo, Grigoroudis and Zopoundis, 2006).Buyers affect competition when they are able to negotiate lower prices, distribution and quality. The number and concentration of consumers and product differentiation are influences. work shift costs and the power of buyers to backwards integrate are factors as well (Mayo, Grigoroudis and Zopoundis, 2006).High entry (and exit) barriers are a deterrent to companies seeking to enter new industries. New entrants alter the competitive climate by change magnitude capacity and competition for market share and by adding new resources. instauration barriers may take the form of capital requirements, economies of scale, product differentiation, switching costs, access to distribution channels, cost of promotion and publicizing, and so on (Mayo, Grigoroudis and Zopoundis, 2006, p. 835).Porters model is versatile, popular and widely used. From banking to brewing, numerous examples of studies conducted using Porters model to analyze the competitive climate of a variety of industries can be found easily. Several of these are summarized below.Finnish publishingIn a study investigating the effect of the internet on the consumer Finnish magazine publishing industry using Porters five forces model (Ellonen, Kuivalainen et al., 2008) conducted semi-structured interviews of eight industry experts. The researchers set specific examples of some of the forces shaping competition within that industry. They chose Porters model as the vehicle for their analysis because it is a useful tool for examining the industry structure and assists in the analysis of industry competitivenes s.They noted that the internet had intensified rivalries among competitors by making proprietary information and that competitors habitually benchmarked each others websites. Financing and support functions were recognized as barriers to entry. As for the treat of substitute products and services, the most noteworthy threat was identified as the internet itself because it offers readers alternative ways to spend their leisure time and their money. nonably, however, neither the bargaining power of buyers (both consumers and advertisers) nor the bargaining power of suppliers was considered a significant hazard.Online bankingSmith (2006) studied the online banking industry and, like the authors in the study of the Finnish publishing industry, used Porters five forces model to bring up the strategic forces alter the industry. Smith chose Porters model because it provides clarity, ease of understanding, and is insightful when examining a complicated and complex issue like strategic m anagement.Smith noted that economies of scale and product differentiation, capital requirements, limited distribution channels, and government regulation were substantial barriers to entry in online banking. Conversely, the bargaining power of suppliers is relatively weak as is the bargaining power of buyers, chiefly cod to the low-cost or free nature of online banking services. Pressure from substitute products is considerable. Traditional banking offers customers a personal touch and some do feel online services are secure enough. Other substitute products are credit unions, ATMs and other financial institutions and credit card companies. Not surprisingly, Smith found that competition is intense in the online banking industry. This is for the most part due to the increasing popularity of computers the internet with each successive generation and the cost savings gained from using online services.European beerNiederhut-Bollmann and Theuvsen (2008), in yet another example of the versatility of Porters model, analyze the dynamic competitive environment of the European (German and Croatian) brewing industry. Niederhut-Bollmann and Theuvsen chose Porters model, they say, because it is powerful, thorough, and provides a ductile framework for this type of analysis. The authors of this study provided a detailed look at the competitive forces affecting both the German and Croatian brewing industries. Moreover, they offered an gigantic analysis of the generic strategies which various breweries had adapted in order to position themselves in the face of the industrys competitive pressures.Porters Generic StrategiesPorter postulated three generic or broad alternative strategies which may be pursued as a response to the competitive pressures. They are termed generic strategies because they are slackly applicable to any industry or business. They are differentiation, cost leadership, and focus. A focus strategy may be further defined as cost focus, differentiation fo cus, or cost and differentiation focus (Ormanidhi Stringa, 2009).A differentiation strategy may be based on material unique product frisks or the perception thereof, conveyed through the use of advertising and marketing tactics, in the eyes customers. Obviously, the product or service feature moldiness be one the customer needs or desires. Moreover, such upraised features and designs or advertising and marketing will increase costs, and customers moldiness be price-insensitive unbidden to pay for the differentiated product or service. This willingness to pay for the differentiated product of service is what provides the company relief from competitive pressure, cost pressure specifically. Firms pursuing a cost leadership strategy must make lower production and distribution costs their priority (Thomas, J., 2006).By keeping their cost lowers than those of their competitors, firms using cost leadership can still price their products up to the level of their competitors and still maintain higher take in profit margins. Alternatively, these firms can price their products lower than those of their competitors in the hope of achieving greater market share and sales volume at the expense of crude profit margins (Thomas, J., 2006). A focus strategy is based on a particular market, customer, product, or geographic.A Focus strategy is a concentrated, narrowly rivet niche strategy (Mayo, D., Grigoroudis, E. Zopoundis, C., 2006). It will normally be employed by pifflinger companies or small target markets. Products and services may be customized to the extent that customers are allowed input throughout all stages of production.European brewingIn the case of European breweries mentioned above, Niederhut-Bollmann and Theuvsen (2008) noted that one German brewer used a cost leadership strategy to tenderloin larger competitors prices by as much as 50 percent. another(prenominal) brewer used national brands to increase customer loyalty in a differentiation strategy . Klosterbrauerei Neuzelle, founded in 1589, uses handed-down brewing techniques for a small local market, a focus strategy. The authors note that although Porter, in his original work, warned that a firm should choose one specific strategy, he later (2001) legitimate that a hybrid strategy (lower operating costs and premium prices) may be appropriate.Japanese industryAllen, Helms, Takeda, White, (2007) studied the use of Porters generic strategies in Japanese firms. According to the authors, the traditional dash of Japanese management in which all employees of a company share risks and gains of the operation layoffs are a last resort, even during economic crises and lifetime employment with a single company is expected, is often cited as a primary cause of the ongoing Japanese recession (p. 70).Recently the Japanese government implemented the Porter Prize in an attempt to spur improvement in the competitiveness of Japanese industry. Several small and medium-sized forms have rec eived the prize presumptively due to their strategy of operating in niche markets, a focus strategy. Larger corporations, those who operate under the keiretsu, or lineage system have not substantially participated in the program arguably due to the characteristic inability to react to change and over-reliance on a group decision-making style inherent in the keiretsu system. The authors believe that encouraging Japanese firms to vie for the Porter Prize will enable those firms to become accustomed to employing competitive strategies and become more profitable.Michael Porters Five Forces Model is still popular today due to its broad applicability and because it is easy to use. Competitive Strategy laid the foundation for the Positioning School of strategic management philosophy. Porters Five Forces Model and his generic strategies have substantially influenced strategic management thought for the last thirty years and will undoubtedly continue to do so.The Value Chain ModelIn 1985, P orter followed up and built upon his Competitive Strategy with Competitive Advantage. In Competitive Advantage, Porter developed the concept of a sustainable advantage and introduced his Value Chain Model. Porter referred to his own model as an activity-based view because used the activities of the firm to analyze the organizations competitive advantage.Value, Porter said, was defined as the sum total that a buyer is willing to pay for what the firm produces or delivers and is measured as total revenue or price times the number of units sold. Economically speaking, the firms survey must exceed its costs, or it is not considered profitable. Competitive analyses, therefore, must be focused on those economic look upon-generating activities which influence the companys costs and provide a means for strategic differentiation (Patnaik and Sahoo, 2009).The time value ambit, according to Porter, is part of the larger value system comprised of the individual value chains of industry supp liers, constituent firms, distributers and buyers (Patnaik and Sahoo, 2009). Interestingly, the term value system has been as widely accepted as value chain has the term industry value chain is more popular (Dommisse and Oosthuizen, 2004). The purpose of the value chain model, according to Porter, was to systematically examine all the activities a firm performs and how they interact (as cited in McPhee Wheeler, 2006).Sheehan and Foss (2009) undertook to examine the intellectual underpinnings of the theory Porter laid out in Competitive Advantage. They note Porters proposal that the accepted value of the firm was not its products or services, but the aggregate value of the chain of individual activities that went into the production process and the only way to identify a means of identifying potential sources of competitive advantage was to examine the firm in terms of these activities. They summarized the key characteristics of Porters activity-based model.The unit of analysis was the activities the firm performed. The value chain focuses on the business or industry level. Activity drivers cost and value drivers play a key role. Activity drivers are the factors that are the firm can influence in order to position the firm as either low cost or differentiator compared to ones competitors. Activities were reason as either primary or supporting activities. Primary activities were defined as those which directly create customer value. Primary activities are related to production and sales of the product, delivery of the product, and after-market sales (Value Chain, 2005).StructurePrimary activities inbound logistics comprises those activities involved in receiving, storing, handling, and distributing materials to the manufacturing or operations department. Manufacturing activities include those activities involved in converting the inputs received into the final product. Outbound logistics activities are those activities which are involved in the shipping, st orage, and final distribution of the end product. Marketing and sales activities are those which are aimed at persuading the customer to buy and pay for the product, e.g., advertising, promotion and pricing. Finally, service activities include all activities concerned with maintaining or enhancing the value of the delivered product such as installation and repair services (Value Chain, 2005).Supporting activitiesSupport activities serve to enhance the value (create added value) already created by the primary activities. Support activities include corporate structure, human resources, technology development, and purchasing. Corporate structure includes those activities related to management including planning, financial and accounting, legal, public relations, and quality management. Human resources activities include recruitment and hiring, training, and pay and benefits. engine room development involves R D functions such as new product development and design. Purchasing encompas ses activities relate to the procurement of supplies and raw materials.The models popularityPorters model is indisputably popular. Ormanidhi and Stringa (2009) examined Porters model in comparison to several other strategies Structure-Conduct-Performance, the New Industrial establishment and Game Theory, the Resource-Based Perspective, and Market Process Economics.The authors cite as proof a study that found Porters Competitive Strategy referenced in nearly half of the articles published in the Strategic Management Journal from 1986 to 1990. They believe Porters model is a most apt methodology for competitive analysis for several reasons. Porters model is most suitable because of its well-defined structure it provides an analytical framework of definite criteria. Porters value chain model is practically meet for empirical analysis because it facilitates the comparison of firms and analysis of their competitive performance. Another reason Ormanidhi and Stringa mention for their pref erence of Porters model is its conceptual clarity its terminology is self-consistent and easily understandable. Furthermore Also, Porters model complements other strategies such as plump for theory and the resource-based model. The last reason is inherent in Porters definition, that is, it is a generic strategy that is sufficiently general that it is applicable to various types of industries such as service and manufacturing firms.ManufacturingWhite and Pearson (2001) proposed in a study of the manufacturing value chain using the JIT concept and technological advances related to systems integration, the establishment of customer service levels on par with overall management objectives in order to improve organizational performance. They used Porters value chain model to demonstrate how the industriousness of JIT systems throughout the manufacturing process enables the organization to integrate its activities in a continuous improvement process. In each stage of the Porter model, primary activities and support activities, the authors illustrate how the application of JIT techniques can optimize the manufacturing process.RetailDommisse and Oosthuizen (2004), utilized Porters model in a study of the U.K. retail life insurance industry and introduced an evolutionary a concept referred to as value chain deconstructionism which, they say, is gaining acceptance. Based on Porters model, value chain deconstruction theory is largely a result of the proliferation of new technologies and regulatory measures. Analysts, they declare, have observed components of the traditional value chain fragmenting to form new or merge with other industries. This relatively new, conceptual models main advantage, according to the authors, is that it clearly highlights the areas in the value chain where the traditional strategies of differentiation, cost leadership and focus can be applied (p. 18). Thus, Porters model persists as the foundation of new and emerging concepts of strategic m anagement.The field of strategic management is complex and various definitions have been proposed based on the different aspects of organizational infrastructure. One means of organizing the numerous schools of thought was proposed by Mintzberg, Ahlstrand and Lampel (as cited in Sadler, 2003, p. 15) who described three major groups labeled the Prescriptive, Descriptive, and Configurational Schools. Michael Porter, renowned scholar, author, advisor, and recipient of a myriad of rewards for his work, laid the foundation of the Positioning School, which falls into the Prescriptive Group.Porters is best known for the theories illuminated in his 1980 work Competitive Strategy Techniques for Analyzing Industries and Competitors in which he presented his Fve Forces Model five elements that affect an industrys profitability, and his generic strategies which are intended to counter those forces. In The Competitive Advantage Creating and Sustaining Superior Performance, published in 1985, Po rter developed his Value Chain Model, a framework for activity-based competitive analysis of a firm.These two monumental works have influenced academia and management since their inception. Widely popular and generally used, these prescient theories have influenced strategic management philosophy the world over. crossways the spectrum of industry types, from Japan to Europe, the impact of Porters works is indisputable. Undoubtedly, Michael Porters influence will continue to be felt in the halls of business for years to come.