On Competition (Hardcover)

by Michael E. Porter (Author) "THE ESSENCE OF STRATEGY FORMULATION is coping with competition..." (more)
Key Phrases: United States, New York, Harvard Business School (more...)

Editorial Reviews

Amazon.com Review
On Competition, a collection of works by Michael E. Porter, is a critical examination of the dog-eat-dog international economy. A Harvard Business School professor, Porter is one of the most respected and innovative economists of his time. Author of 15 books, he advises key elected officials and business leaders in all parts of the world. On Competition features 13 of his best articles over the past 15 years, including 2 new ones. The essence of Porter's message is that every company, country, and person must master competition to thrive in brutal international and domestic economies. Competition is the key to excellence. Worried about losing your job or your services becoming obsolete? Porter believes that a little fear is good for everyone. "Companies that value stability, obedient customers, dependent suppliers and sleepy competitors are inviting inertia and, ultimately, failure," he writes in his 1990 study and essay "The Competitive Advantage of Nations." Porter is a longtime critic of the short-term thinking on Wall Street that often stifles competition and hurts the economy. In "Capital Disadvantage: America's Failing Capital Investment System," he calls for much lower capital-gains rates for people who invest for the long term. He also urges investors and businesses to start thinking together. He contends that pension funds and institutional investors should get a greater say over the companies they own. It's wacky to have company directors with little expertise or financial interest in the company, he writes.

Porter is often unconventional and asserts that businessmen must be, too. In his essay "Green and Competitive," he shows little sympathy for businesses that complain about environmental regulations. Rules to protect the environment don't have to strangle companies--they can actually improve productivity with the right attitude and approach. Rhone-Poulenc, a French chemical and drug company, proved this when it stopped incinerating a certain byproduct and began selling it as an additive for dyes and tanning. Readable and provocative, On Competition is vital for business, government, and financial leaders as well as small-business people and investors. --Dan Ring

From Publishers Weekly
Twenty years of studying industry performance and competitiveness have convinced Porter, a professor at the Harvard Business School and a noted authority on competition and corporate strategy, that a successful company must not only adopt the best practices available but also differentiate itself from its rivals. In 13 essays, some of which have appeared elsewhere, Porter elegantly lays out a sophisticated analytical framework for assessing the challenges firms face in today's business environment. Although Porter offers no magic formula for success, as a starting point for developing a long-term strategy, he does recommend close scrutiny of "factor conditions," "demand conditions," other competing and supporting industries and existing strategies and structures. Porter shows how companies have bested international competitors by forging integrated global strategies, operating with a long-term outlook, investing aggressively and managing factories carefully. He has also come to see the growing importance of geographical location to specific companies and celebrates the benefits of clustersAsystems of interconnected firms and institutionsAfor increased productivity and innovation. On the societal level, Porter's work, with its emphasis on long-term planning, brings a welcome new perspective to perennially thorny policy issues such as environmental protection, inner-city development and universal access to health care. While this book requires a serious investment of time and effort, its expert dissection of a very complex phenomenon is worth it. Line drawings throughout.
Copyright 1998 Reed Business Information, Inc.

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Product Details

• Hardcover: 485 pages
• Publisher: Harvard Business School Press; 1 edition (October 1998)
• Language: English
• ISBN-10: 0875847951
• ISBN-13: 978-0875847955
• Product Dimensions: 9.2 x 6.5 x 1.6 inches
• Shipping Weight: 2 pounds
• Average Customer Review: 4.6 out of 5 stars See all reviews (14 customer reviews)
• Amazon.com Sales Rank: #462,206 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

31 of 32 people found the following review helpful:

4.0 out of 5 stars Great, clear frameworks on competition, December 31, 2000

By	Gerard Kroese (The Netherlands) - See all my reviews (REAL NAME)

Michael E. Porter is a Harvard Business School professor and a leading authority on competition. This book consists of three parts - Competition and Strategy: Core Concepts, The Competitiveness of Locations, and Competitive Solutions to Societal Problems - and each of these parts consists of 4-to-5 Harvard Business Review articles which were published between 1979 and 1998. "The study of competition, in its full richness, has preoccupied me for two decades."

In Part I, the five HBR articles outline Porter's strategic concepts. "I have sought to capture the complexity of what actually happens in companies and industries in a way that both advances theory and brings theory to life for practitioners. My goal has been to develop both rigorous and useful frameworks for understanding competition that effectively bridge the gap between theory and practice." In the 1979-article 'How Competitive Forces Shape Strategy', Porter introduces the monumental five competitive forces (from existing competitors, new entrants, customers, suppliers, substitution). This article has had an extensive impact on the field of strategy and is still a starting point for strategic management at any MBA-course. 'What is Strategy?' was published in 1996 and is, in my opinion, a reply to all the critics of his frameworks and models. The 1985-article 'How Information Gives You Competitive Advantage', Porter and co-author Victor Millar write how information technology influences competition. The current impact of Internet and e-commerce provide excellent examples for this article. In the 1993-article 'End-Game Strategies for Declining Industries', Porter lines up with Kathryn Rudie Harrigan to discuss the last stage/final phase of a industry. This articles is largely based on Harrigan's 1980 book 'Strategies for Declining Businesses' and is a chapter in Porter's 1980-book 'Competitive Strategy'. Part I is finalised with the magnificent 'From Competitive Advantage to Corporate Strategy'. This article is truly a classic and discusses the radical rethinking of corporate strategy. "Corporate strategy is what makes the corporate whole add up to more than the sum of its business parts." This article is the basis of his book 'Competitive Advantage'.

In Part II, Porter kicks off with 'The Competitive Advantage of Nartions', which is also one of the titles of his books. In this 1990-article Porter argues that in a world of increasingly global competition, nations have become more, not less, important. In 'Clusters and Competition' (1998), Porter expands on the theme and discusses the new economics of competition - clusters. "A Cluster is a geographically proximate group of interconnected companies and associated institutions in particular fields, linked by commonalities and complementarities." Examples are the Italian fashion industry, the California Wine cluster, Silicon Valley's venture capital industry, and Massachusetts IT industry. In the next article, 'How Global Companies Win Out' (1992), Porter, Thomas Hout and Eileen Rudden discuss what a global industry is and how global companies can win out. In the next article, 'Competing Across Locations' (1995), returns on this subject and provides additional insights on global strategy, including a general framework.

Part III includes the latest works of Porter. Porter discusses environmental regulation and competition ('Green and Competitive', 1995), with a great case study of the Dutch flower industry, and the impact of these regulations on competition and industries. In the next article ('The Competitive Advantage of the Inner City', 1995), Porter introduces the economic distress of America's inner cities, whereby "the real need - and the real opportunity - is to create wealth" . In the 1990s, Porter also turned more towards government institutions. He discusses the American health care ('Making Competition in Health Care Work', 1994) and, the according to Porter, America's failing capital investment system ('Capital Disadvantage', 1992).

The advantage of this book is that it provides the a quick insight into the ideas and essential points of Porter's books 'Competitive Strategy', 'Competitive Advantage', and 'Competitive Advantage of Nations'. Part I and Part II are now essentials in the field of strategy and competition with fantastic frameworks and models. Part III are Porter's latest articles and discuss the connection between social issues and competition. A great book that is good to read (simple US-English).

7 of 7 people found the following review helpful:

4.0 out of 5 stars Helpful Essays from a Corporate Strategy Icon, December 7, 2002

By	Craig Matteson (Ann Arbor, MI) - See all my reviews (TOP 50 REVIEWER)

This book is a collection of essays and articles by Michael Porter alone or with others. Most of them are collected from his writings in the Harvard Business Review although two are new to this book. Think of this as a "Porter's Greatest Hits" kind of thing. That is a bit misleading because his HBR articles are not exactly the same thing as his Competitive Advantage books although the topics are definitely related.

The essays are grouped into three broad sections: 1) Competition and Strategy: Core Concepts, 2) The Competitiveness of Locations, and 3) Competitive Solutions to Societal Problems. Will you find each article of the same high quality? Probably not (again, like a greatest hits collection), but you will find them informative and thought provoking. It is impossible to study for an MBA nowadays without invoking "Porter's Five Forces" in your discussions of competitive and marketing strategy.

This book can help add to your thinking and understanding of how every aspect of our life is in some way part of a competitive context and the ways it improves our standard of living. It will also help you improve your thinking in how to best strategize for and participate in competitive situations.

It would be a mistake to think that Porter advocates for a Hobbesian nightmare of life being nasty, brutish and short. Rather, he is more or less helping us think through the nature of the way competition arises and how to best think about its sources and how to manage it and the traps to avoid.

While Porter's model is used by some as a hammer that sees everything as a nail, it really needn't be used that way and, in its proper context, is very helpful.

6 of 6 people found the following review helpful:

5.0 out of 5 stars Great aggregration of Porter's work, October 26, 2001

By	Ingo Leung (Hong Kong) - See all my reviews (REAL NAME)

'Porter On Competition' is 'lighter' to read than his 'Trilogy', but it nicely consists the core ideas of his work & how it evolved during the past decades. It provides reader a nice overview about how competitive strategy & competitive advantage are applicable to a wide range of areas: from corporation, industry & nation, to social issues such as health care & environment.