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Competitive advantage. The value chain. Five forces. Industry structure. Differentiation. Relative cost. If you want to understand how companies achieve and sustain competitive success, Michael Porter’s frameworks are the foundation. But while everyone in business may know Porter’s name, many managers misunderstand and misuse his concepts.
Understanding Michael Porter sets the record straight, providing the first concise, accessible summary of Porter’s revolutionary thinking. Written with Porter’s full cooperation by Joan Magretta, his former editor at Harvard Business Review, this new book delivers fresh, clear examples to illustrate and update Porter’s ideas.
Magretta uses her wide business experience to translate Porter’s powerful insights into practice and to correct the most common misconceptions about them—for instance, that competition is about being unique, not being the best; that it is a contest over profits, not a battle between rivals; that strategy is about choosing to make some customers unhappy, not being all things to all customers.
An added feature is an original Q&A with Porter himself, which includes answers to managers’ FAQs.
Eminently readable, this book will enable every manager in your organization to grasp Porter’s ideas—and swiftly deploy them to drive your company’s success.
- Sales Rank: #8692 in Books
- Published on: 2011-12-06
- Original language: English
- Number of items: 1
- Dimensions: 9.50" h x 6.50" w x 1.00" l, 1.06 pounds
- Binding: Hardcover
- 256 pages
Review
“The Harvard professor's books are required reading for health care leaders tackling strategy.” — American Hospital Association
“A book on understanding Porter is worthwhile because he's often misunderstood. He is widely and rightly regarded as the all-time greatest strategy guru, but that view gets the emphasis wrong.” — Fortune magazine
“If you have always intended to read Michael Porter's groundbreaking management classics, but have never quite got around to doing so, Joan Magretta's Understanding Michael Porter does the hard work for you” – Financial Mail (South Africa)
“Magretta’s book is a timely reminder that serves to put Porter’s thinking and concepts before us again—ideas that all firms and strategy practitioners would be well-advised to study and learn from…an excellent read.” — Quality Digest
“Summing Up: Highly recommended” — CHOICE
“Joan Magretta lays out Porter’s ideas on competition in a concise, easy-to-read volume.” — Business Day (South Africa)
“The book is a great read even for those who are looking to get initiated into the Michael Porter way of thinking” — The Economic Times (India)
“Magretta adds value through fresh case studies showing how companies such as Zara, Ikea and In-N-Out Burger deploy Porter’s ideas. Written in a very accessible style, this is a book for managers rather than academics.” — The Irish Times
“Ms. Magretta does a superb job of clearly and logically explaining Prof. Porter’s concepts, with lots of helpful examples. This is a distillation, but it never feels sparse, with ample time for the reader to learn a concept and sufficient reinforcement of the ideas as you are guided through the Porter oeuvre. Reading it brings you up-to-date on his ideas and, more importantly, helps you to understand your own business and the strategic elements you may have missed.” — The Globe & Mail
“200 pages of simple, non-faddish common sense for business.” — Anna Farmery, TheEngagingBrand.com
“Book of the Month. This book will become the strategy bible for today’s busy managers.” — Business Executive
About the Author
Joan Magretta has worked with Michael Porter for almost two decades; she is a Senior Associate at the Institute for Strategy and Competitiveness at Harvard Business School, a McKinsey Award winner, and author of What Management Is, a top pick of its year by The Economist. She was a Bain partner and strategy editor of the Harvard Business Review.
Most helpful customer reviews
72 of 79 people found the following review helpful.
The Most Accessible Introduction to Porter. Period.
By Ashok A
I have read two of Porter's books - Competitive Strategy and Competitive Advantage. And I have also, sort of, understood them - even though I haven't really internalized them for implementing in my company. The reason was that I did not quite get my mind around the concepts in a comprehensive manner as the ideas are in different books and they are not presented as an integrated whole (and, of course, I read them at different times). For the first time, in this book, the concepts are presented in a very accessible manner and connected in a very coherent manner. The books starts (Part 1) with What is Competition - elucidating on the concept of Competition, The Five Forces, and the Value Chain (CA). Part 2 addresses What is Strategy - in which the concepts of Creating Value; Trade-offs; Fit; and Continuity are discussed. The book is wrapped up with A Short List of Implications where in the author summarizes the takeaways and what they mean for us.
I am in the midst of developing a strategy for my company. These easy to understand frameworks have been extremely useful. In fact, after reading this book, I decided not to hire a consultant who was charging me an exorbitant sum ($4,000/day!) as I think that this book will be more helpful. I highly recommend this book esp if you are trying to get a good grasp of the concepts of Michael Porter. An absolute gem.
34 of 40 people found the following review helpful.
Good summary of Porter's ideas on business-unit strategy
By Jackal
Michael Porter's ideas on strategic management are important. However his books Competitive Strategy: Techniques for Analyzing Industries and Competitors and Competitive Advantage: Creating and Sustaining Superior Performance are very dense (in addition to being 30 years old). This much shorter book is written in a journalistic style and conveys Porter's basic ideas relating to business-unit strategy.
The book serves as a first encounter with Porter's thinking, but I would really urge readers to study Porter's two first books as well. Even though Porter's books are 30+ years old, they are important. Classics have the remarkable feature of being relevant whenever they are read. Naturally, they are not perfect. They do not talk enough about service industries, but that was not really America in the 70s. The current book has the same deficiency; not that much about service industries.
Even if you have good familiarity with Porter I still cautiously recommend the book. It sometimes adds contextual information, small updates on Porter's thinking, and useful metaphors. For those of you who already have a fair amount of experience (important!) I would also recommend Good Strategy Bad Strategy: The Difference and Why It Matters.
The book is a summary of Porter's ideas from a journalist, so do not expect any deep, fundamental analysis. We get a fair share of thoughtless statements. We might be told that unbundling of an offering is good because not all customers value a lot of features. Then a bit later, we are told that bundling is good because it makes things easier for the customer's purchase decision. The author points out several times that we should use numbers when analysing. It would have been good if she heeded her own advice. Further on the negative side, the author treats Porter like God. It is okay to have Porter as a hero, but that does not justify hero worship. Sometimes it would have been nice with a more critical perspective. I am not talking of the mediocre academic who blurts out some standard canned critique of Porter. Since the author had access to Porter, more penetrating questions should have been asked. For instance, what is so good with the activity map when you already have a value chain? Personally, I find the activity map totally useless. Or for instance, when core competences are described in such a narrow fashion so they become a straw man. Most examples are straight out of current HBS case studies (eg Ikea, Zara, Southwest Airlines). You might find this positive or you might find the author a bit lazy in using the same examples.
UPDATE 2013
I have reread the book and I am much less positive today. The key reason is that the book only covers 20% of what I think an educated strategist/consultant/CEO should know about Porter's work. The second reason is that the case examples are mostly 10+ years old. One new company described is Zipcar and the stock market has taken that company on a straight downhill ride from 30 to around 10. Oh well.
With full access to Michael Porter a much better job could have been done as evidenced by the most interesting part of the book, the Q&A with Porter.
The book is still worthwhile reading if you read a lot of book. I rate the book three stars.
A better book covering exactly the same ground is Playing to Win: How Strategy Really Works, in which the ex-CEO of P&G gives his description or Porter's theories. That is a four star book in my opinion. However, both books suffer from being verbose, but that sadly is how HBS Press likes their books.
13 of 14 people found the following review helpful.
A home run!
By mark guay
I read the whole book over a long weekend. I must say I could not put it down. For those of us who need an overview of a subject before we dive into the Porter books themselves, this is a great read. For those readers just looking for a summary of Porter's books, this works equally as well. I think this book did Michael Porter the biggest favor of all - it allowed non economics or business majors to understand the importance of strategy. It also turned down the spotlight of individual components of a business [i.e. OE and marketing plans] which, albeit important, must nevertheless be aligned with strategy to be successful. I liked it so much I wrote a blog about it to all my clients. Congratulations to the author.
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