COMPETITIVE

STRATEGY
Techniques for Analyzing
Industries and
Competitors

Michael E. Porter

Audiobook Companion Document

 Copyright © 1980 by Free Press

Introduction copyright © 1998 by Free Press

Published by arrangement with Free Press, a division of Simon & Schuster, Inc. Used with
permission by Echo Point Books & Media, LLC.

For personal use only with purchase of audiobook.

Table of Contents

Figure I-1. The Wheel of Competitive Strategy……………………………………….….… 3

Figure I-2. Context in Which Competitive Strategy Is Formulated…………………………… 4
Figure I-3. Tests of Consistency………………………………………………………………. 5
Figure I-4. Process for Formulating a Competitive Strategy………………………………….. 5
Figure 1-1. Forces Driving Industry Competition……………………………………………… 7
Figure 1-2. Barriers and Profitability………………………………………………………….. 7
Figure 2-1. Three Generic Strategies…………………………………………………………. 8
Figure 2-2………………………………………………………………………………………. 8
Figure 3-1. The Components of a Competitor Analysis………………………………………… 9
Figure 3-3. A Scheme for Assessing a Competitor’s Defensive Capability………………… 10
Figure 3-4. Functions of a Competitor Intelligence System…………………………………. 11
Figure 7-1. A Map of Strategic Groups in a Hypothetical Industry…………………………….. 12
Figure 7-2. Strategic Group mapping and Intergroup Rivalry…………………………….. 13
Exhibit 7-1. Relative Profitability of Industry Leaders and Industry Followers……………… 13
Figure 7-3. Illustrative Map of the U.S. Chain Saw Industry………………………………… 14
Figure 8-1. Stages of the Life Cycle……………………………………………………….. 15
Figure 8-2. Predictions of Product Life Cycle Theories About Strategy, Competition,

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and Performance…………………………………..………………………………………….… 16
Figure 8-3. Illustrative Pattern of Technological Barriers and Industry Evolution………… 19
Figure 8-4. Industry Boundaries………………………………………………………………. 19
Exhibit 9-1. Illustrative Fragmented Industries in U.S. Manufacturing, 1972………….… 20
Figure 9-1. Steps for Formulating Competitive Strategy in Fragmented Industries……….… 24
Figure 10-1. Response of Threatened Industry to Substitution…………………………… 24
Figure 10-2. Forecasting in an Emerging Industry………………………………………… 25
Figure 11-1. Alternative Cost Curves………………………………………………………. 25
Figure 12-1. Alternative Strategies………………………………………………………..… 26
Figure 12-2…………………………………………………………………………………….. 26
Figure 15-1. Elements of the Capacity Expansion Decision…………………………………….. 27
Figure 15-2. Preemptive Capacity Given Economies of Scale…………………………………. 28
Figure A-1. Growth/Share Matrix…………………………………………………………….. 28
Figure A-2. Company Position/Industry Attractiveness Screen………………………….… 29
Figure B-1. Raw Data Categories for Industry Analysis……………………………………… 30
Figure B-2. Sources of Field Data for Industry Analysis……………………………………..… 31

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