The Five Competitive Forces That Shape Strategy

An Interview with Michael E. Porter, Professor, Harvard University. Porter’s five competitive forces is the basis for much of modern business strategy. Understand the framework and how to put it into practice.

Competition ought to be according to true justice in order to benefit the participants the most. Pay for what is worth it, so your own side earns more, punish for what is harmful and your own side works with less problems. These are general principles that come into play in your own thinking: correct feedback = objectivity, in the working of your own group: rational arrangements, and in your own society: good standard of living & a strong nation with a wise culture – all these for your own good!

I wonder would he say the same thing about the internet today…it has been called the great equalizer for the little guy. I also like that he speaks on competition. I believe in this new economy, you should only be in competition with yourself. Yes, you must know what the industry is doing, but you need to individualize and decide what part you can claim for yourself and then keep upgrading from there.