on-competition

If you can't obtain an MBA from Harvard Business School (HBS) due to cost, time or ability, then the next best thing might be to invest in the published works of HBS leaders.  Michael Porter is one HBS author frequently quoted in other business books.  <strong>On Competition: Updated and Expanded Edition</strong> captures the essence of his decades of research and thinking on the topic.

Each chapter represents an individual publication dating back to 1985.  I have to admit that I had doubts that decades-old information would be relevant to today's business environment.  However, the topics are timeless, even though the case studies can periodically seem woefully caught in a time warp.  Remember, the "new facsimile services such as Federal Express's Zapmail"?

Classic thinking, such as the <strong><a href="https://productstrategy.co/content/images/2022/05/image-2.png" target="_blank">Five Forces that Shape Industry Competition</a>,</strong> are worth reflecting on.  In addition to industry rivals these include customers, suppliers, potential entrants and substitute products.  Any business manager who neglects to consider the potential power of forces beyond industry rivals runs the risk of managing an unprofitable, and potentially failing, business.

Porter defines competitive strategy as "deliberately choosing a different set of activities to deliver a unique mix of value."  He cautions that if there are no trade-offs, companies will never achieve sustainable advantage.  "The essence of strategy is choosing what not to do."

His chapter on "Strategy and the Internet" from 2001 cautions that "the Internet is not necessarily a blessing.  It tends to alter industry structures in ways that dampen overall profitability."  The publishing and music industries are just two examples that come to mind eight years after first printing these words.

His chapters "Green and Competitive" and "Refining Competition in Health Care" are timely even though they were written in 1995 and 2004, respectively.

His chapter on corporate philanthropy cautions companies on using giving as a mere form of public relations or advertising to promote a company's image or brand.  Porter suggests that corporations can use their charitable efforts to improve their competitive context and cites Cisco Systems efforts to develop the Cisco Networking Academy which operates in secondary schools, community colleges and community-based organizations.

Finally, his "Seven Surprises for New CEOs" is insightful and a must read for those in a leadership position, those reporting to new leaders and those aspiring to advance beyond middle management.

I summary, you will feel as if you've completed a rigorous three-credit business school course if you successfully navigate this book to completion.

Access Gene Babon's reviews of books on <strong>Business Leadership</strong> and <strong>Business Strategy</strong> at <strong><a href="https://www.pinterest.com/webapprentices/" target="_blank">Pinterest</a>.</strong>