Friday, May 23, 2014

Michael Porter - Biography and Contribution - Strategic Management - Competitive Strategy and Advantage

Michael Eugene Porter  is the Bishop William Lawrence University Professor at The Institute for Strategy and Competitiveness, based at the Harvard Business School. He is a leading authority on competitive strategy of companies and he extended the theory to the competitiveness and economic development of nations, states, and regions.

He was born on 23 May 1947

Michael Eugene Porter received a BSE with high honors in aerospace and mechanical engineering from Princeton University in 1969. He completed his MBA with high distinction in 1971 from Harvard Business School. He obtained PhD in business economics from Harvard University in 1973.

In 2000, Michael Porter was appointed a Harvard University Professor.

Porter studied the effect of competitive forces on industries and their profitability and developed the Porter five forces analysis framework for analyzing industries.

Michael Porter is the author of 18 books  including Competitive Strategy, Competitive Advantage, Competitive Advantage of Nations, and On Competition. Porter wrote many journal and magazine articles describing his research to scientific audience and its application in business to practitioner audience. He is a six-time winner of the McKinsey Award for the best Harvard Business Review article of the year. Porter acknowledges the achievement with a statement in  a 2010 interview: "What I've come to see as probably my greatest gift is the ability to take an extraordinarily complex, integrated, multidimensional problem and get arms around it conceptually in a way that helps, that informs and empowers practitioners to actually do things."

His ideas on strategic management are taught in virtually every business school in the world.

His main academic objectives focus on how a firm or a region can build a competitive advantage and develop competitive strategy; the competitiveness of nations, regions and cities; and solutions to social problems. He is also a Fellow Member of the Strategic Management Society. One of his most significant contributions is the five forces. Porter's strategic system consists primarily of:

Competitive advantage, which describes how companies choose to be lower cost or differentiated relative to rivals;
Porter five forces analysis that identifies the prospective profitability and attractiveness of industries;
Strategic groups

Value chain analysis, which determines how organizational activities contribute to the chosen strategy of the organization - cost leadership or differentiation.
Generic strategies of cost leadership, product differentiation, and focus, based on choices regarding competitive scope and competitive advantage;
Porter's clusters of competence for regional economic development
Diamond model, a framework for understanding why particular nations are more competitive; and
Porter's four corners model
Competition among nations

Michael Porter is one of the founders of The Monitor Group, a strategy consulting firm. In 2013 Monitor was sold to Deloitte Consulting through a structured bankruptcy proceeding.

Selected Publications

Papers and Articles

Porter, M.E. (1987) "From Competitive Advantage to Corporate Strategy", Harvard Business Review, May/June 1987, pp 43–59.
Porter, M.E. (1991) "Towards a Dynamic Theory of Strategy", Strategic Management Journal, 12 (Winter Special Issue), pp. 95–117
Porter, M.E. (1996) "What is Strategy", Harvard Business Review, Nov/Dec 1996.
McGahan, A.M. & Porter, M.E. Porter. (1997) "How Much Does Industry Matter, Really?" Strategic Management Journal, 18 (Summer Special Issue), pp. 15–30.
Porter, M.E. (2001) "Strategy and the Internet", Harvard Business Review, March 2001, pp. 62–78.
Porter, M.E. & Kramer, M.R. (2006) "Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility", Harvard Business Review, December 2006, pp. 78–92.
Porter, M.E. (2008) "The Five Competitive Forces That Shape Strategy", Harvard Business Review, January 2008, pp. 79–93.
Porter, M.E. & Kramer, M.R. (2011) "Creating Shared Value," Harvard Business Review, Jan/Feb 2011, Vol. 89 Issue 1/2, pp 62–77

Porter, M.E. (1979) "How Competitive Forces Shape Strategy", Harvard Business Review, March/April 1979.
Porter, M.E. (1980) Competitive Strategy, Free Press, New York, 1980.
Porter, M.E. (1985) Competitive Advantage, Free Press, New York, 1985.
Porter, M.E. (ed.) (1986) Competition in Global Industries, Harvard Business School Press, Boston, 1986.

Porter, M.E. (1998) On Competition, Boston: Harvard Business School, 1998.
Porter, M.E. (1990, 1998) "The Competitive Advantage of Nations", Free Press, New York, 1990.

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