Competitive Strategy

Now nearing its 60th printing in English and translated into nineteen languages, Michael E. Porter's work has transformed business strategy theory and practice globally. Porter's analysis of industry competition is grounded in five underlying forces, providing a clear framework for understanding market dynamics. He introduces three generic strategies—lowest cost, differentiation, and focus—that help structure strategic positioning. By defining competitive advantage in terms of relative cost and prices, he directly links it to profitability and offers a fresh perspective on profit creation and distribution. Since its publication nearly two decades ago, Porter's framework for predicting competitor behavior has reshaped how companies view their rivals, leading to the emergence of competitor assessment as a new discipline. Over a million managers, analysts, consultants, students, and scholars have embraced Porter's insights to evaluate industries, understand competition, and select strategic positions. The concepts presented address the core fundamentals of competition, independent of specific company strategies. This work has filled a significant gap in management thinking, providing a foundational structure for subsequent research and practice. Porter's frameworks and insights deliver a sophisticated understanding of competition, making it a cornerstone of strategic management in the past quarter-century.