Author
Michael Porter
6 key ideas, each explained in our own words.
Competitive Strategy
- IDEA 1
Five forces
Industry profitability depends on rivalry, the threat of new entrants, the threat of substitutes, and the bargaining power of buyers and suppliers.
- IDEA 2
Three generic strategies
Firms win through cost leadership, differentiation, or focus on a niche. Being average at all of them leaves you stuck in the middle.
- IDEA 3
Industry structure matters
Some industries are structurally more profitable than others. Understand the structure before choosing where to compete.
Debates featuring Michael Porter
Compete harder, or escape competition?Win the competitive game vs Create a new spaceShould the state run businesses?Leave it to markets vs Some sectors need the stateIs the only duty of business to make profit?Profit is the duty vs Business owes societyDoes progress come from competition or cooperation?Competition drives vs Cooperation builds
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