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Introduction ix (8)
Preface xvii(4)
Introduction, 1980 xxi
PART I General Analytical Techniques 3 (188)
CHAPTER 1 THE STRUCTURAL ANALYSIS OF 3 (31)
INDUSTRIES
Structural Determinants of the Intensity of 5 (24)
Competition
Structural Analysis and Competitive Strategy 29 (3)
Structural Analysis and Industry Definition 32 (2)
CHAPTER 2 GENERIC COMPETITIVE STRATEGIES 34 (13)
Three Generic Strategies 35 (6)
Stuck in the Middle 41 (3)
Risks of the Generic Strategies 44 (3)
CHAPTER 3 A FRAMEWORK FOR COMPETITOR ANALYSIS 47 (28)
The Components of Competitor Analysis 49 (18)
Putting the Four Components Together-The 67 (4)
Competitor Response Profile
Competitor Analysis and Industry Forecasting 71 (1)
The Need for a Competitor Intelligence 71 (4)
System
CHAPTER 4 MARKET SIGNALS 75 (13)
Types of Market Signals 76 (10)
The Use of History in Identifying Signals 86 (1)
Can Attention to Market Signals Be a 87 (1)
Distraction?
CHAPTER 5 COMPETITIVE MOVES 88 (20)
Industry Instability: The Likelihood of 89 (2)
Competitive Warfare
Competitive Moves 91 (9)
Commitment 100 (5)
Focal Points 105 (1)
A Note on Information and Secrecy 106 (2)
CHAPTER 6 STRATEGY TOWARD BUYERS AND 108 (18)
SUPPLIERS
Buyer Selection 108 (14)
Purchasing Strategy 122 (4)
CHAPTER 7 STRUCTURAL ANALYSIS WITHIN 126 (30)
INDUSTRIES
Dimensions of Competitive Strategy 127 (2)
Strategic Groups 129 (13)
Strategic Groups and a Firm's Profitability 142 (7)
Implications for Formulation of Strategy 149 (3)
The Strategic Group Map as an Analytical 152 (4)
Tool
CHAPTER 8 INDUSTRY EVOLUTION 156 (35)
Basic Concepts in Industry Evolution 157 (6)
Evolutionary Processes 163 (21)
Key Relationships in Industry Evolution 184 (7)
PART II Generic Industry Environments 191 (109)
CHAPTER 9 COMPETITIVE STRATEGY IN FRAGMENTED 191 (24)
INDUSTRIES
What Makes an Industry Fragmented? 196 (4)
Overcoming Fragmentation 200 (6)
Coping with Fragmentation 206 (4)
Potential Strategic Traps 210 (3)
Formulating Strategy 213 (2)
CHAPTER 10 COMPETITIVE STRATEGY IN EMERGING 215 (22)
INDUSTRIES
The Structural Environment 216 (5)
Problems Constraining Industry Development 221 (4)
Early and Late Markets 225 (4)
Strategic Choices 229 (5)
Techniques for Forecasting 234 (1)
Which Emerging Industries to Enter 235 (2)
CHAPTER 11 THE TRANSITION TO INDUSTRY 237 (17)
MATURITY
Industry Change during Transition 238 (3)
Some Strategic Implications of Transition 241 (6)
Strategic Pitfalls in Transition 247 (2)
Organizational Implications of Maturity 249 (3)
Industry Transition and the General Manager 252 (2)
CHAPTER 12 COMPETITIVE STRATEGY IN DECLINING 254 (21)
INDUSTRIES
Structural Determinants of Competition in 255 (12)
Decline
Strategic Alternatives in Decline 267 (4)
Choosing a Strategy for Decline 271 (2)
Pitfalls in Decline 273 (1)
Preparing for Decline 274 (1)
CHAPTER 13 COMPETITION IN GLOBAL INDUSTRIES 275 (25)
Sources and Impediments to Global 277 (10)
Competition
Evolution to Global Industries 287 (4)
Competition in Global Industries 291 (3)
Strategic Alternatives in Global Industries 294 (1)
Trends Affecting Global Competition 295 (5)
PART III Strategic Decisions 300 (61)
CHAPTER 14 THE STRATEGIC ANALYSIS OF 300 (24)
VERTICAL INTEGRATION
Strategic Benefits and Costs of Vertical 302 (13)
Integration
Particular Strategic Issues in Forward 315 (2)
Integration
Particular Strategic Issues in Backward 317 (1)
Integration
Long-Term Contracts and the Economics of 318 (4)
Information
Illusions in Vertical Integration Decisions 322 (2)
CHAPTER 15 CAPACITY EXPANSION 324 (15)
Elements of the Capacity Expansion Decision 325 (3)
Causes of Overbuilding Capacity 328 (7)
Preemptive Strategies 335 (4)
CHAPTER 16 ENTRY INTO NEW BUSINESSES 339 (22)
Entry through Internal Development 340 (10)
Entry through Acquisition 350 (6)
Sequenced Entry 356 (5)
APPENDIX A PORTFOLIO TECHNIQUES IN COMPETITOR 361 (7)
ANALYSIS
APPENDIX B HOW TO CONDUCT AN INDUSTRY ANALYSIS 368 (15)
Bibliography 383 (6)
Index 389 (8)
About the Author 397

Now nearing its sixtieth printing in English and translated into nineteen languages, Michael E. Porter's Competitive Strategy has transformed the theory, practice, and teaching of business strategy throughout the world.

Electrifying in its simplicity-like all great breakthroughs-Porter’s analysis of industries captures the complexity of industry competition in five underlying forces. Porter introduces one of the most powerful competitive tools yet developed: his three generic strategies-lowest cost, differentiation, and focus?which bring structure to the task of strategic positioning. He shows how competitive advantage can be defined in terms of relative cost and relative prices, thus linking it directly to profitability, and presents a whole new perspective on how profit is created and divided. In the almost two decades since publication, Porter's framework for predicting competitor behavior has transformed the way in which companies look at their rivals and has given rise to the new discipline of competitor assessment.

More than a million managers in both large and small companies, investment analysts, consultants, students, and scholars throughout the world have internalized Porter's ideas and applied them to assess industries, understand competitors, and choose competitive positions. The ideas in the book address the underlying fundamentals of competition in a way that is independent of the specifics of the ways companies go about competing.

Competitive Strategy has filled a void in management thinking. It provides an enduring foundation and grounding point on which all subsequent work can be built. By bringing a disciplined structure to the question of how firms achieve superior profitability, Porter’s rich frameworks and deep insights comprise a sophisticated view of competition unsurpassed in the last quarter-century.