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The Five Competitive Forces That Shape Strategy

The Five Competitive Forces That Shape Strategy
Editor’s Note: In 1979, Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist and associate professor, Michael E. Porter. It was his first HBR article, and it started a revolution in the strategy field. In subsequent decades, Porter has brought his signature economic rigor to the study of competitive strategy for corporations, regions, nations, and, more recently, health care and philanthropy. “Porter’s five forces” have shaped a generation of academic research and business practice. With prodding and assistance from Harvard Business School Professor Jan Rivkin and longtime colleague Joan Magretta, Porter here reaffirms, updates, and extends the classic work. In essence, the job of the strategist is to understand and cope with competition. As different from one another as industries might appear on the surface, the underlying drivers of profitability are the same. The Five Forces That Shape Industry Competition Forces That Shape Competition

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