Competitive Strategy : Techniques for Analyzing Industries and Competitors
Now nearing its sixtieth printing in English and translated into nineteen languages, Michael E. Porter's Competitive Strategy has transformed the theory, practice, and teaching of business strategy throughout the world.Electrifying in its simplicity-like all great breakthroughs-Porter's analysis of industries captures the complexity of industry competition in five underlying forces. Porter introduces one of the most powerful competitive tools yet developed: his three generic strategies-lowest cost, differentiation, and focus-which bring structure to the task of strategic positioning. He shows how competitive advantage can be defined in terms of relative cost and relative prices, thus linking it directly to profitability, and presents a whole new perspective on how profit is created and divided. In the almost two decades since publication, Porter's framework for predicting competitor behavior has transformed the way in which companies look at their rivals and has given rise to the new discipline of competitor assessment. More than a million managers in both large and small companies, investment analysts, consultants, students, and scholars throughout the world have internalized Porter's ideas and applied them to assess industries, understand competitors, and choose competitive positions. The ideas in the book address the underlying fundamentals of competition in a way that is independent of the specifics of the ways companies go about competing. Competitive Strategy has filled a void in management thinking. It provides an enduring foundation and grounding point on which all subsequent work can be built. By bringing a disciplined structure to the question of how firms achieve superior profitability, Porter's rich frameworks and deep insights comprise a sophisticated view of competition unsurpassed in the last quarter-century.
- Hardback | 432 pages
- 158 x 234 x 40mm | 703.06g
- 04 Aug 1998
- SIMON & SCHUSTER
- The Free Press
- New York, United States
- FREE PRESS
Philip Kotler S.C. Johnson & Son, Distinguished Professor of International Marketing, Northwestern University Porter's books on competitive strategy are the seminal works in the field. Journal of Business Strategy Any manager who studies and uses the materials in this book should be able to devise more successful strategies. Strategic Management Journal Represents a quantum leap...may well be one of the most important contributions to the discipline of strategic management. Choice Few books warrant the too-common publisher's blurb "landmark." This one does. Highest recommendation. The New York Times American executives are grasping for a logic to global competition. Mr. Porter...has given them one. Fortune Three overarching game plans that work in one industry after another explain how thousands of real-world competitors come out on top.
About Michael E. Porter
Michael E. Porter, one of the world's leading authorities on competitive strategy and international competitiveness, is the C. Roland Christensen Professor of Business Administration at the Harvard Business School. In 1983, Professor Porter was appointed to President Reagan's Commission on Industrial Competitiveness, the initiative that triggered the competitiveness debate in America. He serves as an advisor to heads of state, governors, mayors, and CEOs throughout the world. The recipient of the Wells Prize in Economics, the Adam Smith Award, three McKinsey Awards, and honorary doctorates from the Stockholm School of Economics and six other universities, Porter is the author of fourteen books, among them Competitive Strategy, The Competitive Advantage of Nations, and Cases in Competitive Strategy, all published by The Free Press. He lives in Brookline, Massachusetts.
Table of contents
ContentsIntroductionPrefaceIntroduction, 1980PART I General Analytical TechniquesChapter 1 The Structural Analysis of IndustriesStructural Determinants of the Intensity of CompetitionStructural Analysis and Competitive StrategyStructural Analysis and Industry DefinitionChapter 2 Generic Competitive StrategiesThree Generic StrategiesStuck in the MiddleRisks of the Generic StrategiesChapter 3 A Framework for Competitor AnalysisThe Components of Competitor AnalysisPutting the Four Components Together -- The CompetitorResponse ProfileCompetitor Analysis and Industry ForecastingThe Need for a Competitor Intelligence SystemChapter 4 Market SignalsTypes of Market SignalsThe Use of History in Identifying SignalsCan Attention to Market Signals Be a Distraction?Chapter 5 Competitive MovesIndustry Instability: The Likelihood of Competitive WarfareCompetitive MovesCommitmentFocal PointsA Note on Information and SecrecyChapter 6 Strategy Toward Buyers and SuppliersBuyer SelectionPurchasing StrategyChapter 7 Structural Analysis Within IndustriesDimensions of Competitive StrategyStrategic GroupsStrategic Groups and a Firm's ProfitabilityImplications for Formulation of StrategyThe Strategic Group Map as an Analytical ToolChapter 8 Industry EvolutionBasic Concepts in Industry EvolutionEvolutionary ProcessesKey Relationships in Industry EvolutionPART II Generic Industry EnvironmentsChapter 9 Competitive Strategy in Fragmented IndustriesWhat Makes an Industry Fragmented?Overcoming FragmentationCoping with FragmentationPotential Strategic TrapsFormulating StrategyChapter 10 Competitive Strategy in Emerging IndustriesThe Structural EnvironmentProblems Constraining Industry DevelopmentEarly and Late MarketsStrategic ChoicesTechniques for ForecastingWhich Emerging Industries to EnterChapter 11 The Transition to Industry MaturityIndustry Change during TransitionSome Strategic Implications of TransitionStrategic Pitfalls in TransitionOrganizational Implications of MaturityIndustry Transition and the General ManagerChapter 12 Competitive Strategy in Declining IndustriesStructural Determinants of Competition in DeclineStrategic Alternatives in DeclineChoosing a Strategy for DeclinePitfalls in DeclinePreparing for DeclineChapter 13 Competition in Global IndustriesSources and Impediments to Global CompetitionEvolution to Global IndustriesCompetition in Global IndustriesStrategic Alternatives in Global IndustriesTrends Affecting Global CompetitionPART III Strategic DecisionsChapter 14 The Strategic Analysis of Vertical IntegrationStrategic Benefits and Costs of Vertical IntegrationParticular Strategic Issues in Forward IntegrationParticular Strategic Issues in Backward IntegrationLong-Term Contracts and the Economics of InformationIllusions in Vertical Integration DecisionsChapter 15 Capacity ExpansionElements of the Capacity Expansion DecisionCauses of Overbuilding CapacityPreemptive StrategiesChapter 16 Entry into New BusinessesEntry through Internal DevelopmentEntry through AcquisitionSequenced EntryAppendix A Portfolio Techniques in Competitor AnalysisAppendix B How to Conduct an Industry AnalysisBibliographyIndexAbout the Author