Michael Porter
- Name
- Michael Porter
- Era / Years
- 1947–present
- Key Contribution
- Competitive Strategy; Five Forces Model; Value Chain Analysis; Generic Strategies
- Profile
Michael Porter (1947–present) is a renowned Harvard Business School professor and a leading authority on competitive strategy.
Five Forces Model
- A framework for analyzing industry attractiveness and profitability by examining five competitive forces:
- Threat of New Entrants: How easily new competitors can enter the market.
- Bargaining Power of Suppliers: The ability of suppliers to influence prices.
- Bargaining Power of Buyers: The ability of customers to drive down prices.
- Threat of Substitute Products or Services: The likelihood of customers switching to alternative offerings.
- Rivalry Among Existing Competitors: The intensity of competition among current players in the industry.
Three Generic Competitive Strategies
- Cost Leadership: Striving to be the lowest-cost producer in the industry.
- Differentiation: Offering unique and superior products or services valued by customers.
- Focus: Concentrating on a narrow market segment, either through cost focus or differentiation focus.
Value Chain Analysis
- A tool for identifying primary and support activities that add value to a product or service:
- Primary activities: Inbound logistics, Operations, Outbound logistics, Marketing & Sales, Service.
- Support activities: Firm infrastructure, Human Resources management, Technology development, Procurement.
Key Books
- 'Competitive Strategy: Techniques for Analyzing Industries and Competitors' (1980)
- 'Competitive Advantage: Creating and Sustaining Superior Performance' (1985)