On Competition

I read this book when it was first published (in 1979) and recently re-read it prior to reading his most recent work, Redefining Health Care which I will also review in the near future. In the Introduction (which then became the first chapter of Competitive Strategy, published in 1980), Porter observes that competition "has intensified over the last decades, in virtually all parts of the world." That is even more true of competition - especially global competition -- during the 27 years since Porter shared that observation. Nonetheless, the core concepts which he and his collaborators rigorously examine remain relevant...indeed, in my opinion, have become even more relevant. Consider these assertions: 1. Competition shapes strategy 2. Successful strategy creates a "fit" among all organizational activities 3. Information can provide a decisive competitive advantage 4. Declining industries require an "end-game" strategy 5. Successful corporate strategy "builds" on three premises: Competition occurs at the business unit level, diversification inevitably adds costs and constraints to business units, and, shareholders can readily diversify themselves. 6. "Moving from competitive strategy to corporate strategy is the business equivalent of passing through the Bermuda Triangle." Porter carefully organizes the material within three Parts: First, he focuses on competition and strategy for companies at both the level of a single industry and then for multinational or diversified companies; next, he addresses the role of location in competition; and then he Part III, he addresses some important societal issues (e.g. environment, urban poverty, health care, and income inequality), each of which he asserts - and I wholly agree - is "inextricably bound up with economics and, more specifically, with competition." All but two of the articles originally appeared in Harvard Business Review, the exceptions being "Clusters and Competition: New Agendas for Companies, Governments, and Institutions" and "Competing Across Locations: Enhancing Competitive Advantage through a Global Strategy." In the former, Porter explains his concept of clusters, clusters which are geographic concentrations of firms, suppliers, related industries, and specialized institutions that occur in a particular field in a nation, state, or city. In the latter, Porter brings together the two dimensions of international strategy - location and global networks. As he observes, "The concept of activities, so important to understanding competitive advantage in general terms, provides the basic framework for international strategy as well." This is by no means an "easy read" but it will generously reward those who read it with appropriate care. By all accounts, Michael Porter is among the most influential and productive knowledge leaders, justly renowned for his cutting-edge thinking on the subject of strategy formulation and implementation but in this volume and in countless others, he al

'Porter On Competition' is 'lighter' to read than his 'Trilogy', but it nicely consists the core ideas of his work & how it evolved during the past decades. It provides reader a nice overview about how competitive strategy & competitive advantage are applicable to a wide range of areas: from corporation, industry & nation, to social issues such as health care & environment.

This book is well known in Consulting circles, Ivy league schools & CEO circles to be THE Competition bible. The Why:1- each chapter has a clear framework, with not just examples, but bullet proof proving arguments2- the frameworks are not just sharp and clear, they also provide the complete Big picture, generating powerful insights3- Following an incredibly successful professional path as a consultant, M. Porter is the leading authority in Competition and advisor of numerous Fortune 500 CEOs...

This is a brilliant collection of Michael Porter's work and should be the first stop for anyone interested in competition, competitive strategy, and competitive advantage. For nearly three decades, Porter has been the leading thinker in this area, and On Competition publishes his 11 greatest articles on this subject--plus two new ones--and an introduction that ties all of his work together.From his early work on competition among companies and within industries to his later work on the competitive advantage of locations, to his most recent work on competitive solutions to societal problems such as the distress of inner cites, On Competition covers it all in a clear, easy-to-follow sequence.

Michael Porter clearly explains why having competitors is good, and why having them closer is better! Society improves by innovations caused by competition, and this happens faster and farther in clusters. This book also explains why joint ventures will become a more important business structure. I especially like the the idea that a better future depends on matching the culture of the business and the values of the people to foster more opportunity. Every executive in a consolidating industry should read this book.