Competitive Advantage: Creating and Sustaining Superior Performance

Michael Porter



Now beyond its eleventh printing and translated into twelve languages, Michael Porter’s The Competitive Advantage of Nations has changed completely our conception of how prosperity is created and sustained in the modern global economy. Porter’s groundbreaking study of international competitiveness has shaped national policy in countries around the world. It has also transformed thinking and action in states, cities, companies, and even entire regions such as Central America.

Based on research in ten leading trading nations, The Competitive Advantage of Nations offers the first theory of competitiveness based on the causes of the productivity with which companies compete. Porter shows how traditional comparative advantages such as natural resources and pools of labor have been superseded as sources of prosperity, and how broad macroeconomic accounts of competitiveness are insufficient. The book introduces Porter’s “diamond,” a whole new way to understand the competitive position of a nation (or other locations) in global competition that is now an integral part of international business thinking. Porter's concept of “clusters,” or groups of interconnected firms, suppliers, related industries, and institutions that arise in particular locations, has become a new way for companies and governments to think about economies, assess the competitive advantage of locations, and set public policy.

Even before publication of the book, Porter’s theory had guided national reassessments in New Zealand and elsewhere. His ideas and personal involvement have shaped strategy in countries as diverse as the Netherlands, Portugal, Taiwan, Costa Rica, and India, and regions such as Massachusetts, California, and the Basque country. Hundreds of cluster initiatives have flourished throughout the world. In an era of intensifying global competition, this pathbreaking book on the new wealth of nations has become the standard by which all future work must be measured.

What will you learn from this book

  1. Value Chain Analysis: Porter introduces the concept of the value chain, which helps companies analyze their internal operations and identify areas where they can create value and gain a competitive advantage.

  2. Cost Leadership: Porter discusses the strategy of cost leadership, where companies aim to become the lowest-cost producer in their industry. This allows them to offer lower prices than their competitors.

  3. Differentiation: Another key strategy discussed by Porter is differentiation, where companies aim to differentiate their products or services from those of their competitors in ways that are valued by customers.

  4. Focus: Porter also discusses the focus strategy, where companies focus on a specific market segment or niche. This allows them to better meet the needs of that segment and compete more effectively.

  5. Sustainable Competitive Advantage: Porter emphasizes the importance of building a sustainable competitive advantage that is difficult for competitors to replicate.

  6. Industry Analysis: Porter stresses the importance of analyzing the industry in which a company operates, including the competitive forces at play and the overall attractiveness of the industry.

  7. Competitive Strategy: Porter outlines three generic strategies that companies can use to achieve a competitive advantage: overall cost leadership, differentiation, and focus.

  8. Strategic Positioning: Porter discusses the importance of strategic positioning, or how a company positions itself in the market relative to its competitors.

  9. Competitive Forces: Porter introduces the concept of competitive forces, including the threat of new entrants, the bargaining power of buyers and suppliers, the threat of substitute products or services, and the intensity of competitive rivalry.

  10. Strategic Fit: Finally, Porter emphasizes the importance of strategic fit, or ensuring that a company's activities are aligned with its overall strategy. This includes aligning the value chain activities with the chosen competitive strategy.

Language English
ISBN-10 0743260872
ISBN-13 9780743260879
No of pages 557
Font Size Medium
Book Publisher the free press
Published Date 19 Jan 2004

About Author

Author : Michael Porter

4 Books

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