Competition Quote by Michael E. Porter
““The strongest competitive force or forces determine the profitability of an industry and become the most important to strategy formulation. The most salient force, however, is not always obvious. P. 26””
About This Quote
Source Book: Competitive Strategy, Michael E. Porter, 1980
Industry profitability hinges on key competitive forces, which may be hidden and must be identified for effective strategy.
In simple terms: Key forces shape profit; they can be hidden.
Identify hidden forces to craft strategy.
Themes
Mood
Type
When to use this quote
- market entry
- product development
- pricing
- mergers
- regulatory review
Key Concepts
Questions to Reflect On
- Which forces dominate your industry?
- How can you influence hidden forces?
Not all forces are equally controllable.