The Five Competitive Forces That Shape Strategy by Michael E. Porter论文.docVIP

The Five Competitive Forces That Shape Strategy by Michael E. Porter The Five Competitive Forces That Shape Strategy by Michael E. Porter Included with this full-text Harvard Business Review article: The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 24 Article Summary 25 The Five Competitive Forces That Shape Strategy A list of related materials, with annotations to guide further exploration of the article’s ideas and applications 41 Further Reading Awareness of the five forces can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack. Reprint R0801E .hbr.org The Five Competitive Forces That Shape Strategy The Idea in Brief The Idea in Practice C O P YR IG H T ?? 2 00 8 H A R V A R D B U SI N E SS S C H O O L P U B LI SH IN G C O R P O R A T IO N . A LL R IG H T S R E SE R V E D . You know that to sustain long-term profit- ability you must respond strategically to competition. And you naturally keep tabs on your established rivals . But as you scan the competitive arena, are you also looking beyond your direct competitors? As Porter explains in this update of his revolutionary 1979 HBR article, four additional competi- tive forces can hurt your prospective profits: ?? Savvy customers can force down prices by playing you and your rivals against one another. ?? Powerful suppliers may constrain your profits if they charge higher prices. ?? Aspiring entrants , armed with new ca- pacity and hungry for market share, can ratchet up the investment required for you to stay in the game. ?? Substitute offerings can lure customers away. Consider commercial aviation: It’s one of the least profitable industries because all five forces are strong. Established rivals compete intensely on price. Customers are fickle, searching for the best deal rega