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The necessary complement to the pathbreaking book Competitive Strategy, Michael E. Porter's Competitive Advantage explores the foundations of competitive benefit in the individual firm. With over 30 printings in English and translated into thirteen languages, this second volume in Porter's site trilogy describes exactly how a firm in fact obtains a benefit over its competitors. Competitive Advantage presents an entire brand-new means of comprehending what a firm does. Porter's groundbreaking concept of the value chain disaggregates a business into "tasks," or the discrete functions or processes that stand for the elemental foundation of competitive benefit.
Now an essential part of worldwide company thinking, Competitive Advantage takes technique from broad vision to an inside consistent setup of tasks. Its effective framework provides the tools to comprehend the drivers of cost and a business's relative cost position. Porter's value chain enables managers to isolate the hidden sources of buyer value that will command a premium cost, and the reasons one product and services substitutes for an additional. He demonstrates how competitive benefit lies not only in tasks themselves but in the means tasks connect to each other, to supplier tasks, and to client tasks. Competitive Advantage also offers the first time the tools to tactically segment a market and carefully assess the competitive logic of diversification.
That the expressions "competitive benefit" and "lasting competitive benefit" have ended up being commonplace is testimony to the power of Porter's ideas. Competitive Advantage has actually led numerous companies, company institution students, and scholars in comprehending the roots of competition. Porter's work captures the phenomenal complexity of competition in a way that makes technique both concrete and workable.