Competitive Advantage

Creating and Sustaining Superior Performance

by Michael E. Porter

Number of pages: 592

Publisher: Free Press

BBB Library: Business Classics, Corporate Success

ISBN: 978-0684841465

About the Author

Michael Eugene Porter (born May 23, 1947)[2] is an American academic known for his theories on economics, business strategy, and social causes. He is the Bishop William Lawrence University Professor at Harvard Business School, and he was one of the founders of the consulting firm The Monitor Group (now part of Deloitte).


Editorial Review

In this book, the author illustrates using real life experiences how a firm should analyze the competition and position itself in such a way that it pulls a fair share of the market. In the book, the author covers the need for a firm to establish a value chain and add value to their product and how they can use proper analysis to earn the competitive advantage. In the current business environment where competition is stiff due to a global economy, it is important for a firm to gain competitive advantage in order to survive. It is for this reason that the book is a must read business classic.

Book Reviews

“The ideas in “Competitive Advantage” persuaded corporate chiefs to undertake more internal reflection. Previously their firm's identity had been largely described in terms of its relationship to others: its market share, for instance, or its relative size. Porter made corporate navel-gazing respectable.” –The Economist.

Books on Related Topics

Wisdom to Share

Competition is a core determinant of the success or failure of a business.

Identifying the cost of purchased inputs also offers more information for cost analysis.

With value, comes satisfaction for the buyer.

Technological changes are unavoidable as they are basic drivers of competition.

Technology is embodied in every aspect of the value chain.

A good competitor challenges the firm to be proactive and helps in developing a sustainable growth of the industry.

Bad competitors make it difficult for the company to maintain competitive advantage.

Substitution occurs gradually.

The management requires creating strategies to support their agenda.

Competitor interrelationships occur when a firm competes with rivals diversified in more than one business unit.

A challenger needs to have a different strategy in order to successfully attack the industry leader.