The essence of formulating competitive strategy is relating a company to its environment.Michael E. Porter
Innovation is the central issue in economic prosperity.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.Michael E. Porter
The state of competition in an industry depends on five basic forces. The collective strength of these forces determines the ultimate profit potential of an industry.Michael E. Porter
The collective strength of the forces determines the ultimate potential for profit in the industry, symbolized by the height of the central rock in Exhibit.Michael E. Porter
The configuration of the five forces differs by industry. In the ocean-going tankers industry, barriers to entry, rivalry, power of buyers, and threat of substitutes are predominant.Michael E. Porter
However, a new competitive force is never merely another player. Rather, it includes all the pressures surrounding that force as well.Michael E. Porter
The key to growth is to learn to respect the competition.Michael E. Porter
Strong competitive forces drive down prices or costs of inputs, squeeze investment in innovation, customer service, and raise the cost of competing.Michael E. Porter
Competition on dimensions unrelated to customer value is a zero-sum game, with one competitor’s gain coming at another’s expense.Michael E. Porter