Competitive Advantage: Creating and Sustaining Superior Performance

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COMPETITIVE ADVANTAGE: CREATING AND SUSTAINING SUPERIOR PERFORMANCE Michael Porter
Contents
Introduction

Chapter 1: Competitive Strategy: The Core Concepts3
The Structural Analysis of Industries4
Industry Structure and Buyer Needs6
Generic Competitive Strategies7
Cost Leadership8
Differentiation9
Focus9
Stuck In The Middle10
Sustainability12
RISKS OF COST LEADERSHIP12
RISKS12
OF DIFFERENTIATION12
RISKS12
OF12
FOCUS12
Generic Strategies and Industry Evolution13
Generic Strategies and Organizational Structure14
Generic Strategies and Strategic Planning Process14
Chapter 2: The Value Chain and Competitive Advantage15
The Value Chain15
Identifying Value Activities16
The value Chain and Organizational Structure22
CHAPTER 3: Cost Advantage (p. 62)22
Section 1: The Value Chain and Costs Analysis (p.64)22
Section 2: Cost Behavior (p. 70)24
Section 3: Cost Advantage (p. 97)30
Chapter 4: Differentiation (p.119)38
Section 1: Sources of Differentiation38
Section 2: The cost of differentiation (p.127)41
Section 3: Buyer value and differentiation42
Section 4: Differentiation strategy46
Section 5: The steps in differentiation (p. 162)50
Chapter 5: Technology and Competitive Advantage (p.165)51
Section 1: Technology and Competition51
Section 2: Technology Strategy54
Section 3: Technology Evolution58
Section 4: Formulating Technological Strategy60
Chapter 6: Competitor Selection61
Section 1: THE STRATEGIC BENEFITS OF COMPETITORS61
Section 2: What Makes a “Good” Competitor?64
“Good” Market Leaders65
Section 3: Influencing the Pattern of Competitors65
Section 4: The Optimal Market Configuration66
Section 5: Pitfalls In Competitor selection68
Part II Competitive Scope within an Industry (p. 230)69
Chapter7: Industry Segmentation and Competitive Advantage69
Section 1: Bases For Industry Segmentation69
Section 2: The Industry Segmentation Matrix72
Buyer type72
Section 3: Industry Segmentation73
and Competitive Strategy73
Section 4: industry segmentation77
and Industry Definition77
Chapter 8: Substitution78
Section 1: IDENTIFYING SUBSTITUTES(p.274)78
Section 2: The Economics of Substitution79
Section 3: Changes in the Substitution Threat82
Section 4: The Path of Substitution84
Section 5: Substitution and Competitive Strategy85
PART III: CORPORATE STRATEGY AND COMPETITIVE ADVANTAGE88
Chapter 9: Interrelationship among Business Units (p. 317)88
Section 1: The Growing Importance of Horizontal Strategy88
Section 2: Interrelationships Among Business Units89
Section 3: Tangible Interrelationships89
Section 4: Intangible Interrelationships (p. 350)93
Section 5: Competitor Interrelationships (p. 353)94
Chapter 10: Horizontal Strategy (p. 364)96
Section 1: The need for explicit horizontal strategy (p.365)97
Section 2: interrelationships and diversification strategy (P. 375)99
Section 3: Pitfalls in Horizontal Strategy (p. 380)100
Chapter 11: Achieving Interrelationships (p. 383)101
Section 1: Impediments to Achieving Interrelationships101
Section 2: Organizational Mechanisms for Achieving Interrelationaships (p. 393)104
Section 3: Managing Horizontal Organizations107
Chapter 12: Complementary Products and Competitive Advantage (p.416)107
Section 1: Control Over Complementary Products (p.418)108
Section 2: Bundling (p. 425)110
Section 3: Cross Subsidization (p. 436)114
Complements and Competitive Strategy (p. 442)117
Part IV: Implications for Offensive and Defensive Competitive Strategy117
Chapter 13: Industry Scenarios and Competitive Strategy under Uncertainty (p. 445)117
Section 1: Constructing Industry Scenarios (p. 448)118
Section 2: Industry Scenarios and competitive Strategy (p. 470)124
Section 3: Scenarios and the Planning Process (p. 478)127
Chapter 14: Defensive Strategy (p.482)128...
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