9 Quotes by Michael E. Porter

Understanding the competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition (and profitability) over time. P. 26

The strongest competitive force or forces determine the profitability of an industry and become the most important to strategy formulation. The most salient force, however, is not always obvious. P. 26

If the forces are intense, (..) almost no company earns attractive returns on investment.If the forces are benign, (..) many companies are profitable. P. 25

Understanding industry structure is also essential to effective strategic positioning P. 26

In essence, the job of the strategist is to understand and cope with competition. P. 25

Competitive forces = the underlying drivers of profitability P.25

Approaches to differentiating can take many forms: design or brand image, technology, features, customer service, dealer network, or other dimensions.

Strategy becomes the particular array of activities aligned to deliver a particular mix of value to a chosen array of customers.

Strategy can be viewed as building defenses against the competitive forces or finding a position in the industry where the forces are weakest. P.35