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The Competitive Advantage : Creating and Sustaining Superior Performance - Michael E. Porter

The Competitive Advantage

Creating and Sustaining Superior Performance

Hardcover Published: 1st June 1998
ISBN: 9780684841465
Number Of Pages: 592

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The essential complement to the pathbreaking book Competitive Strategy, Michael E. Porter's Competitive Advantage explores the underpinnings of competitive advantage in the individual firm. With over 30 printings in English and translated into thirteen languages, this second volume in Porter's landmark trilogy describes how a firm actually gains an advantage over its rivals.

Competitive Advantage introduces a whole new way of understanding what a firm does. Porter's groundbreaking concept of the value chain disaggregates a company into 'activities' or the discrete functions or processes that represent the elemental building blocks of competitive advantage.

Now an essential part of international business thinking, Competitive Advantage takes strategy from broad vision to an internally consistent configuration of activities. Its powerful framework provides the tools to understand the drivers of cost and a company's relative cost position. Porter's value chain enables managers to isolate the underlying sources of buyer value that will command a premium price, and the reasons why one product or service substitutes for another. He shows how competitive advantage lies not only in activities themselves but in the way activities relate to each other, to supplier activities, and to customer activities. Competitive Advantage also provides for the first time the tools to strategically segment an industry and rigorously assess the competitive logic of diversification.

That the phrases 'competitive advantage' and 'sustainable competitive advantage' have become commonplace is testimony to the power of Porter's ideas. Competitive Advantage has guided countless companies, business school students, and scholars in understanding the roots of competition. Porter's work captures the extraordinary complexity of competition in a way that makes strategy both concrete and actionable.

Industry Reviews

'The most influential management book of the past quarter century...A veritable goldmine of analytical concepts and tools to help companies get a much clearer grasp of how they can create and sustain competitive advantage.' Philip Kotler S.C. Johnson & Son, Distinguished Professor of International Marketing, Northwestern University

'Michael Porter has done it again. Having defined the 'what' and 'why' of competitive strategy in his earlier book, he now defines the 'how' in Competitive Advantage.' Newsday

'A sharp, aggressive and cogently reasoned book about competition that your smarter rivals will try to get to first.' The Washington Post

'A brilliant structural analysis of what competitive advantage might mean...' Antitrust Law & Economics Review

Competitive Strategy: The Core Concepts
The Structural Analysis Of Industries
Industry Structure and Buyer Needs
Industry Structure and the Supply/Demand Balance
Generic Competitive Strategies
Cost Leadership
FocusStuck in the Middle
Pursuit of More Than One Generic Strategy
Sustainability Generic Strategies and Industry Evolution
Generic Strategies and Organizational Structure Generic Strategies and the Strategic Planning Process
Overview Of This Book
Principles Of Competitive Advantage
The Value Chain and Competitive Advantage
The Value Chain
Identifying Value Activities
Defining the Value Chain
Linkages within The Value Chain
Vertical Linkages
The Buyer's Value Chain
Competitive Scope And The Value Chain
Segment Scope
Vertical Scope
Geographic Scope
Industry Scope
Coalitions and Scope
Competitive Scope and Business Definition
The Value Chain and Industry Structure
The Value Chain And Organizational Structure
Cost Advantage
The Value Chain And Cost Analysis
Defining the Value Chain for Cost Analysis
Assigning Costs and Assets First Cut Analysis of Costs
Cost Behavior
Cost Drivers The Cost of Purchased Inputs
Segment Cost Behavior
Cost Dynamics
Cost Advantage
Determining the Relative Cost of Competitors
Gaining Cost Advantage
Sustainability of Cost Advantage
Implementation and Cost Advantage
Pitfalls in Cost Leadership Strategies
Steps In Strategic Cost Analysis
Sources Of Differentiation
Differentiation and The Value Chain
Drivers of Uniqueness
The Cost Of Differentiationbuyer Value And Differentiation
Buyer Value
The Value Chain and Buyer Value
Lowering Buyer Cost
Raising Buyer Performance
Buyer Perception of Value
Buyer Value and the Real Buyer
Buyer Purchase Criteria
Identifying Purchase Criteria
Differentiation Strategy
Routes to Differentiation
The Sustainability of Differentiation
Pitfalls in Differentiation
Steps In Differentiation
Technology and Competitive Advantage
Technology and Competition
Technology and The Value Chain
Technology and Competitive Advantage
Technology and Industry Structure
Technology Strategy
The Choice of Technologies to Develop
Technological Leadership or Followership
Licensing of Technology
Technological Evolution
Continuous Versus Discontinuous Technological Evolution
Forecasting Technological Evolution
Formulating Technological Strategy
Competitor Selection
The Strategic Benefits Of Competitors
Increasing Competitive Advantage
Improving Current Industry Structure
Aiding Market Development
Deterring Entry
What Makes A "Good" Competitor?
Tests of a Good Competitor"Good" Market Leaders Diagnosing Good Competitors
Influencing The Pattern Of Competitors
Damaging Good Competitors in Battling Bad Ones Changing Bad Competitors into Good Ones
The Optimal Market Configuration
The Optimal Competitor Configuration Maintaining Competitor Viability Moving toward the Ideal Competitor Configuration
Maintaining Industry Stability
Pitfalls In Competitor Selection
Competitive Scope Within An Industry
Industry Segmentation and Competitive Advantage
Bases For Industry Segmentation
Structural Bases For Segmentation
Segmentation Variables
Finding New Segments
The Industry Segmentation Matrix
Relationships Among Segmentation Variables
Combining Segmentation Matrices
Industry Segmentation and Competitive Strategy
The Attractiveness of a Segment
Segment Interrelationships
Table of Contents provided by Publisher. All Rights Reserved.

ISBN: 9780684841465
ISBN-10: 0684841460
Audience: General
Format: Hardcover
Language: English
Number Of Pages: 592
Published: 1st June 1998
Publisher: Simon & Schuster
Country of Publication: US
Dimensions (cm): 24.49 x 16.61  x 4.57
Weight (kg): 0.8
Edition Number: 2
Edition Type: Revised

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