COMPETITIVE STRATEGY: Techniques for Analyzing Industries and Competitors

by Michael E. Porter

In this book, Michael Porter shows the 5 structural forces that explain why some industries consistently sustain high profits while others barely break even. He presents a comprehensive toolkit for diagnosing any industry, choosing a defensible position, and building a strategy for lasting profitability.

In this summary, you'll learn:

• How 5 competitive forces (new entrants, direct rivalry, substitutes, buyers, suppliers) shape any industry's profitability, and why firms in the same industry earn different returns.
• How to choose and commit to 1 of 3 generic strategies (cost leadership, differentiation, focus), and how to avoid getting "stuck in the middle."
• How to use buyer and supplier selection to strengthen your position, predict competitors' next moves, and plan your offensive and defensive moves without destructive retaliation.
• How to adapt your strategy to 5 different industry contexts (fragmented, emerging, mature, declining, global), and when/how to integrate vertically, expand capacity, or enter a new market.

Who should read this:

• Executives and business leaders who need to decide where and how to compete in their industry.
• Strategists, consultants, and researchers who want a systematic approach to industry and competitor analysis.