Competitive Strategy: Techniques for Analyzing Industries and Competitors
by Michael E. Porter
View on GoodreadsBefore you pick a strategy, look at the structure of your industry. Michael E. Porter's case, first published in 1980, is that five competitive forces shape how profitable a firm can be, and that a firm defends its position through one of three generic strategies.
Core ideas
- Five forces: The threat of new entrants, the bargaining power of buyers and suppliers, the threat of substitutes and rivalry among existing competitors set an industry's structure.
- Three strategies: You compete on lowest cost, on differentiation or by focusing on a particular segment, and relative cost and price link that advantage to profit.
- Read your rivals: Porter gives methods for predicting competitor behavior and for decisions like vertical integration, capacity expansion and entering new businesses as industries evolve.
Published1980
Pages397
ISBN9780684841489
ReadFeb 2020
