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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” quote by Michael E. Porter
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““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””

Michael E. Porter

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.

Key Takeaway

Identify hidden forces to craft strategy.

Themes

strategy competition analysis

Mood

analytical strategic

Type

business educational

When to use this quote

  • market entry
  • product development
  • pricing
  • mergers
  • regulatory review

Key Concepts

Porter’s Five Forces industry dynamics profitability

Questions to Reflect On

  • Which forces dominate your industry?
  • How can you influence hidden forces?
A Different Perspective

Not all forces are equally controllable.

2.3 out of 5 (9 ratings)

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