How Competitive Forces Shape Strategy

Source: hbr.org

Michael E. Porter, a Harvard Business School professor, presents a systematic way for executives to analyze competition beyond just rival products. He identifies five basic competitive forces that drive industry attractiveness and profitability. The core argument is that strategy means positioning a business to deal best with these forces, influencing choices on entry, pricing, and differentiation. It matters because it gives managers a practical tool to assess industries and build sustainable a