ABSTRACT
The secondary themes of Michael E. Porter's Competitive Strategy: Techniques for Analyzing Industries and Competitors are how businesses can pursue a competitive advantage by aiming at lower cost, a differentiated product, or a narrow focus on a target audience. Lower cost—which he refers to as cost leadership—aims at attracting the most price-sensitive customers. Differentiation is aimed at less price-sensitive customers who are not being served well by the existing market. Porter's second strategy—differentiation—may suit larger companies better. It targets customers who are slightly less price-sensitive, and are underserved by the existing market. It creates "something that is perceived industry-wide as being unique". Porter provides many other helpful insights into competing in particular types of industries. The book reviews the declining industries, like cigar manufacture or bookbinding, and industries undergoing rapid globalization, like the automotive industry at present.
