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How Competitive Forces Shape Strategy

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Major contending forces, says this expert on business strategy, determine the state of ... How Competitive Forces Shape Strategy ... Michael E. Porter. Youhave2freearticlesleftthismonth. Youarereadingyourlastfreearticleforthismonth. Subscribeforunlimitedaccess. Createanaccounttoread2more. Competitivestrategy HowCompetitiveForcesShapeStrategy Awarenessoftheseforcescanhelpacompanystakeoutapositioninitsindustrythatislessvulnerabletoattack. by MichaelE.Porter by MichaelE.Porter FromtheMagazine(March–April1979) ·Longread PeterWaltonPhotography/GettyImages Summary.    Majorcontendingforces,saysthisexpertonbusinessstrategy,determinethestateofcompetitioninanindustry:thethreatofnewentrants,thebargainingpowerofcustomersandofsuppliers,theintenserivalryofcompetitors,andthethreatofsubstituteservicesorproducts.Oncethecorporatestrategisthasassessedtheseforces,hecanidentifyhisowncompany’sstrengthsandweaknessesandactaccordinglytoputupthebestdefenseagainstcompetitiveassaults. Tweet Post Share Save Print Theessenceofstrategyformulationiscopingwithcompetition.Yetitiseasytoviewcompetitiontoonarrowlyandtoopessimistically.Whileonesometimeshearsexecutivescomplainingtothecontrary,intensecompetitioninanindustryisneithercoincidencenorbadluck. AversionofthisarticleappearedintheMarch–April1979issueofHarvardBusinessReview. ReadmoreonCompetitivestrategy orrelatedtopic Strategyformulation MichaelE.PorteristheBishopWilliamLawrenceUniversityProfessoratHarvardBusinessSchool.Hehasservedasanadvisertogovernmentsandcampaignsaroundtheworldontheadvancementofsocialpolicyandeconomicpolicy,includingMittRomney’spresidentialcampaign.Hislatestpaperis TheRoleofBusinessinSociety.HeisanacademicadvisertotheLeadershipNowProject. Tweet Post Share Save Print new HBRLearning StrategyPlanningandExecutionCourse AccelerateyourcareerwithHarvardManageMentor®.HBRLearning’sonlineleadershiptraininghelpsyouhoneyourskillswithcourseslikeStrategyPlanningandExecution.EarnbadgestoshareonLinkedInandyourresume.Accessmorethan40coursestrustedbyFortune500companies.Freeforalimitedtime! Howtodevelopawinningstrategy—andputittowork. StartCourse LearnMore&SeeAllCourses Thisisasubscriber-onlyarticle. SubscribeNow I'malreadyasubscriber. SignIn. SignIn ForgotPassword? I'masubscriber,butIdon'thaveanHBR.orgaccount Thanksforyourpatience. We’reupgradingoursystemssowecanbetterserveoursubscribers.Unfortunately,thatmeanswehavetotemporarilysuspendsubscribersyncing.We apologizefortheinconvenience.We’llbebackupandrunningwithin48hours. Let’sfindyoursubscription. Enteryoursubscriberemailaddress. Continue Weneedalittlemoreinformationtofindyoursubscription. Enteranaccountnumber. Continue Iwanttotryagainwithadifferentemailaddress. Needhelpgettingaccess? Callcustomerservice: US/Canada:800-274-3214 Asia/Pacific:+61291586127 AllOtherCountries:+441858438412 Havequestions?SeeoursubscriptionFAQ. You'reasubscriber!Nowgetaccesstoyourbenefits. Confirmyoursubscriberinformationandenteryourpassword.Confirmyoursubscriberinformationandcreateapassword NAME: EMAIL:NotYou? Showpassword Hidepassword Passwordsmusthaveatleast10characters,onenumber,onelowerand oneuppercaseletter,andonespecialcharacter SyncYourSubscriptionCreateAccount ForgotPassword? You'reallset,. YounowhaveaccesstoallyoursubscriberbenefitsonHBR.org. We'vesentanemailtoconfirmingyourHBR.orgaccount. BackTo Forgotyourpassword? Enteryouremailaddressandwe'llsendyoualinktoresetyourpassword. Continue Forgotyourpassword? Ifyouremailisregisteredwithus,youwillreceiveanemailwithalinktoresetyourpassword. Don'thaveanaccount?Activateyoursubscription. Needhelpgettingaccess?ContactCustomerService:800.988.0886(U.S./Canada) 617.783.7500(International)[email protected] Takemeback,Iwanttostartover. PartnerCenter Diversity Latest Magazine Ascend Topics Podcasts Video Store TheBigIdea Data&Visuals CaseSelections HBRLearning

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