8 Quotes by Joan Magretta

Competing to be the best feeds on imitation. Competing to be unique thrives on innovation.

Insight into customers’ needs is important, but it’s not enough. The essence of strategy and competitive advantage lies in the activities, in choosing to perform activities differently or to perform different activities from those of rivals. Each of the companies we’ve just described has done just that, tailoring their value chains to their value propositions.

Instead of competing to be the best, companies can – and should – compete to be unique. This concept is all about value.

As manufactured products have become increasingly commoditylike, and therefore less valuable to customers, GE has not been alone in discovering that often more money can be made from the services related to a product.

Memorizing the five forces won’t make you a better business thinker; it will only help you to sound like one. It matters that you grasp the deeper point: there are a limited number of structural forces at work in every industry that systematically impact profitability in a predictable direction.

A common mistake in strategy is to choose the same core competences as everyone else in your industry.

In business, multiple winners can thrive and coexist. Competition focuses more on meeting customers needs than on demolishing rivals. Just look around. Because there are so many needs to serve, there are many ways to win.

The first test of a strategy is whether your value proposition is different from your rivals. If you are trying to serve the same customers and meet the same needs and sell at the same relative price, then by Porter’s definition, you don’t have a strategy.