2.3.1 The Structural Approach
The structural approach (Porter, 1980; Caves and Ghemawat, 1992) examines and emphasizes on the role of
entry and mobility barriers that are erected to safeguard an organization from the competitive forces and threats
from current rivalries, substitutes and potential new entrants. Porter (1980) developed an industry analysis
framework (five forces) which argues that, holding industry structure constant, positioning in an industry plays
an important role in determining the organization’s competitive advantage and profitability (Ma, 2003).
Sustainable advantage is, therefore, achieved by defending and positioning themselves in an attractive position;
while continuously ward themselves off from the current rivalries and potential rivals by erecting and
manipulating the entry and mobility barriers (Porter, 1985).