Analysis of Romanian IT Industry; Strategic Diagnostics using Michael Porter’s Model

Abstract:

The IT (Information Technology) sector represents a phenomenon of modern society, which has led to a favorable change in the economic course, in most countries of the world. In Romania, the potential for the development of the IT industry has undergone an ascending evolution over time. The degree of innovation and permanent transformation led to the manifestation of an intense competition in the IT sector in Romania. This study aims to establish the attractiveness of the IT industry in Romania, as well as the factors that led to the development of the competitive environment, through a strategic diagnosis using a tool for strategic analysis and diagnosis - the model of the five forces, developed by Michael Porter. The results of the study indicate that all five strengths of Michael Porter's model exert significant influence, but in different proportions, on the competitive environment and the degree of attractiveness of the IT industry. Although Porter's model offers a clear strategic frame of the IT industry, it is quite static, and the manifestation of the five forces does not maintain its validity over time.

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