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Full Description
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.
Contents
Contents
Introduction
Preface
Introduction, 1980
PART I General Analytical Techniques
Chapter 1 The Structural Analysis of Industries
Structural Determinants of the Intensity of Competition
Structural Analysis and Competitive Strategy
Structural Analysis and Industry Definition
Chapter 2 Generic Competitive Strategies
Three Generic Strategies
Stuck in the Middle
Risks of the Generic Strategies
Chapter 3 A Framework for Competitor Analysis
The Components of Competitor Analysis
Putting the Four Components Together -- The Competitor
Response Profile
Competitor Analysis and Industry Forecasting
The Need for a Competitor Intelligence System
Chapter 4 Market Signals
Types of Market Signals
The Use of History in Identifying Signals
Can Attention to Market Signals Be a Distraction?
Chapter 5 Competitive Moves
Industry Instability: The Likelihood of Competitive Warfare
Competitive Moves
Commitment
Focal Points
A Note on Information and Secrecy
Chapter 6 Strategy Toward Buyers and Suppliers
Buyer Selection
Purchasing Strategy
Chapter 7 Structural Analysis Within Industries
Dimensions of Competitive Strategy
Strategic Groups
Strategic Groups and a Firm's Profitability
Implications for Formulation of Strategy
The Strategic Group Map as an Analytical Tool
Chapter 8 Industry Evolution
Basic Concepts in Industry Evolution
Evolutionary Processes
Key Relationships in Industry Evolution
PART II Generic Industry Environments
Chapter 9 Competitive Strategy in Fragmented Industries
What Makes an Industry Fragmented?
Overcoming Fragmentation
Coping with Fragmentation
Potential Strategic Traps
Formulating Strategy
Chapter 10 Competitive Strategy in Emerging Industries
The Structural Environment
Problems Constraining Industry Development
Early and Late Markets
Strategic Choices
Techniques for Forecasting
Which Emerging Industries to Enter
Chapter 11 The Transition to Industry Maturity
Industry Change during Transition
Some Strategic Implications of Transition
Strategic Pitfalls in Transition
Organizational Implications of Maturity
Industry Transition and the General Manager
Chapter 12 Competitive Strategy in Declining Industries
Structural Determinants of Competition in Decline
Strategic Alternatives in Decline
Choosing a Strategy for Decline
Pitfalls in Decline
Preparing for Decline
Chapter 13 Competition in Global Industries
Sources and Impediments to Global Competition
Evolution to Global Industries
Competition in Global Industries
Strategic Alternatives in Global Industries
Trends Affecting Global Competition
PART III Strategic Decisions
Chapter 14 The Strategic Analysis of Vertical Integration
Strategic Benefits and Costs of Vertical Integration
Particular Strategic Issues in Forward Integration
Particular Strategic Issues in Backward Integration
Long-Term Contracts and the Economics of Information
Illusions in Vertical Integration Decisions
Chapter 15 Capacity Expansion
Elements of the Capacity Expansion Decision
Causes of Overbuilding Capacity
Preemptive Strategies
Chapter 16 Entry into New Businesses
Entry through Internal Development
Entry through Acquisition
Sequenced Entry
Appendix A Portfolio Techniques in Competitor Analysis
Appendix B How to Conduct an Industry Analysis
Bibliography
Index
About the Author
