J. V. Bruni and Company
1528 North Tejon Street
Colorado Springs, Colorado 80907
(719) 575-9880 or (800) 748-3409
J. V. Bruni and Company1528 North Tejon Street Colorado Springs, Colorado 80907 (719) 575-9880 or (800) 748-3409
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Competitive Strategy,
by Michael
Porter.
Warren Buffett, the most successful investor of our age, once said that
the key to investing was to determine the competitive advantage of a
company and the durability of that advantage. But how does one go about
doing this? Michael Porter, a Harvard professor and sometime
consultant, provides such a methodology. Specifically, Porter analyzes
how industries, and specific companies in such industries, gain and
maintain competitive advantage. Porter describes in detail the forces
that drive industry competition—the threat of new entrants, the
bargaining power of suppliers, the bargaining power of buyers, the
threat of substitute products and the rivalry among existing firms.
Further, he highlights the strategies which can be used to deal with
those threats, such as cost leadership, product differentiation or
focus. Porter provides an excellent framework for analyzing industries
and businesses to determine if they possess and can maintain competitive
advantage, thus giving investors an invaluable tool for successful
investing. |
“Perhaps no framework has had a greater influence on management thinking than the one developed by Michael E. Porter in his seminal work, Competitive Strategy.” Alfred Rappaport |