Synopsis of Competitive Strategy: Techniques for Analyzing Industries and Competitors
Now nearing its 60th printing in English and translated into nineteen languages, Michael E. Porter's Competitive Strategy has transformed the theory, practice, and teaching of business strategy throughout the world. Electrifying in its simplicity -- like all great breakthroughs -- Porter's analysis of industries captures the complexity of industry competition in five underlying forces. Porter introduces one of the most powerful competitive tools yet developed: his three generic strategies -- lowest cost, differentiation, and focus -- which bring structure to the task of strategic positioning. He shows how competitive advantage can be defined in terms of relative cost and relative prices, thus linking it directly to profitability, and presents a whole new perspective on how profit is created and divided. In the almost two decades since publication, Porter's framework for predicting competitor behavior has transformed the way in which companies look at their rivals and has given rise to the new discipline of competitor assessment.

More than a million managers in both large and small companies, investment analysts, consultants, students, and scholars throughout the world have internalized Porter's ideas and applied them to assess industries, understand competitors,, and choose competitive positions. The ideas in the book address the underlying fundamentals of competition in a way that is independent of the specifics of the ways companies go about competing.

Competitive Strategy has filled a void in management thinking. It provides an enduring foundation and grounding point on which all subsequent work can be built. By bringing a disciplined structure to thequestion of how firms achieve superior profitability, Porter's rich frameworks and deep insights comprise a sophisticated view of competition unsurpassed in the last quarter-century.
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Art DeLorenzo and I were having a hard time connecting. He’s a 67-year-old retired financial adviser in the New York City area whose budding consulting practice keeps him from settling into an easy chair. I’m a journalist in San Francisco, perpetually on deadline. Several appointments we set were moved or missed, but we kept trying. Late one evening, as we seemed finally to settle on yet another date for our interview, DeLorenzo threw out a comment that would prove as valuable as anything he said in our hour-long phone call days later.

“Wait a moment.” DeLorenzo paused. “I could say 3 p.m., but the group I’ll be meeting with before you, they tend to run over. It’s just their habit, but I know this. So I’d rather not book you right up against them. I don’t want to compromise the integrity of my commitment to them.”

The details of one man’s business schedule might not seem meaningful at first. But in that moment I realized DeLorenzo’s deliberate emphasis on a few choice words—“the integrity of my commitment”—was a straightforward yet eloquent statement of a still-fuzzy but increasingly important trend: spiritual capitalism.

Spiritual capitalism doesn’t mean prayer sessions on the shop floor and guided meditations in the boardroom. At least it doesn’t have to. What it does mean is the success of an enterprise is measured by values like “integrity” and “commitment” as much as by targets like “efficiency” and “profitability.” It’s based on the recognition that every businessperson—whether you’re the CEO of a major multinational or the head of your own small firm—is in the service industry, and the services rendered must benefit not just yourself and your shareholders, but the planet and other people as well. The first commandment of the growing spiritual-capitalism movement is: Taking care of business means taking care of others.