What’s Happening?!
Apple announced all-time record quarterly earnings.
Intel exceeded earnings expectations for the quarter.
2004 holiday sales were the best since 1999.
Wal-Mart on the offensive against critics regarding
employment practices and impact on communities.
Americans are Fat and Binge Drink
2001 Study
We are a society that is somewhat taken with excesses.
More than one in five people are obese.
300,000 U.S. adults die from causes related to obesity.
100,000 Americans die a year because of alcohol abuse.
Half of adult Americans do not drink at all.
An On-going Issue with
Newspapers
The function of the press is to inform but its role is to
make money.
Investigative reporting wins Pulitzer Prices but costs a
lot of money.
Announcements
Complete list of student presentations are on
the course web page.
First ISM Toastmasters meeting a week from
today at noon in new Engineering Building
room 280. Sign up today and make sure your
email address is legible.
Global Competitiveness Ranking
Criteria:
1. Quality of national business environment.
2. The set of institutions, market structures and economic
policies supportive of high level of prosperity.
3. Company operations and strategy ranking.
Michael Porter, Institute for Strategy and Competitiveness, Harvard
Business School
World Economic Forum web page.
1998 Rankings
1. Singapore
11. Ireland
2. Hong Kong
12. Japan
3. US
13. New Zealand
4. UK
14. Australia
5. Canada
15. Finland
6. Taiwan
16. Denmark
7. Netherlands
17. Malaysia
8. Switzerland
18. Chile
9. Norway
19. Korea
10. Luxembourg
20. Austria
Source: World Economic Forum
Global Competitiveness Ranking
2002
1. US (2)
11. Japan (15)
21. Norway (19)
2. Finland (1)
12. Austria (13)
22. New Zealand (20)
3. UK (7)
13. Belgium (14)
23. Korea (26)
4. Germany (4)
14. Australia (9)
24. Italy (24)
5. Switzerland (5)
15. France (12)
25. Spain (23)
6. Sweden (6)
16. Taiwan (21)
26. Malaysia (37)
7. Netherlands (3)
17. Iceland (16)
27. Slovenia (32)
8. Denmark (8)
18. Israel (17)
28. Hungary (27)
9. Singapore (10)
19. Hong Kong (18) 29. South Africa (25)
20. Ireland (22)
30. Estonia (28)
10. Canada (11)
Global Competitiveness Ranking
33. Brazil (30)
37. India (36)
38. China (47)
48. Poland (42)
55. Mexico (52)
61. Philippines (53)
58. Russia (58)
60. Vietnam (62)
79. Bolivia (75)
80. Haiti
2004 Ranking
Country
2004 rank 2004 score 2003 rank
Finland
1
5.95
1
United States
2
5.82
2
Sweden
3
5.72
3
Taiwan
4
5.69
5
Denmark
5
5.66
4
Norway
6
5.56
9
Singapore
7
5.56
6
Switzerland
8
5.49
7
Japan
9
5.48
11
Iceland
10
5.44
8
Country
United Kingdom
Netherlands
Germany
Australia
Canada
New Zealand
France
Korea
China
Italy
Mexico
India
Brazil
Poland
Indonesia
Russian Federation
Philippines
Vietnam
Kenya
Chad
2004 rank 2004 score 2003 rank
11
12
13
14
15
18
27
29
46
47
48
55
57
60
69
70
76
77
78
104
5.30
5.30
5.28
5.25
5.23
5.18
4.92
4.90
4.29
4.27
4.17
4.07
4.05
3.98
3.72
3.68
3.51
3.47
3.45
2.50
15
12
13
10
16
14
26
18
44
41
47
56
54
45
72
70
66
60
83
101
Major Points
It is no longer possible for a country to insulate itself from the
rest of the world.
Within the current industrialized world there is a narrowing of
the gap between it and third world countries.
The accelerated pace of change is what disturbs the
pessimists, because they can see it happening.
It took Britain 60 years to double its output, the US 50 years
but developing countries are doubling output every 12 years.
China has actually doubled its GDP in seven years.
In many respects the developing world is unknown economic
and financial territory.
Conclusions
• The diamond of national advantage makes sense as a
means of understanding global economic success.
• Domestic success does prepare companies to compete
globally.
• Major European and an increasing number of Asian
countries are capable of competing on a global basis.
• The global marketplace is only going to get tougher
based on more, tougher competitors.
• The diamond can help to anticipate and understand new
competitors.
Chapter 2 Summary
Business Competitive
Environment
The First of Three Perspectives:
The Business Environment
• Business Environment
• Enterprise Environment
• IT Environment
Business
Success
Important Factors to Understand the
BCE of a Company
Defining Competitiveness and a
Competitive Model
 How a Company Gains a Competitive
Advantage.
 The benefits to be gained from
understanding the Competitive Advantage
of Nations concepts.
 The Company Agenda
 The Role of Government

Competitiveness: A Definition
The degree to which a nation can, under free
and fair market conditions, produce goods and
services that will meet the test of international
markets while simultaneously maintaining or
expanding the real income of its citizens.
Summary of Competitive Model

Three primary inputs to improved domestic
performance
– Human Resources
– Capital
– Technology
Trade policy and new competition act as
possible barriers to go global
 Trickle down effect for increased standard
of living

How Does a Company Gain
Competitive Advantage?

Providing value to customers is what
competitiveness is all about.

A Good Competitor Knows:
– Its Products and Services
– Its Customers
– Its Competitors
The Diamond of National
Advantage
Chance
Firm Strategy,
Structure and
Rivalry
Factor
Conditions
Demand
Conditions
Related and
Supporting
Industries
Government
The Competitive Advantage of
Nations
The home nation plays a major role in the
achieving and sustaining competitive
advantage among companies
 The home nation acts a catalyst in creating
the right business competitive environment
 “Perceive a new basis for competing or find
a better means of competing in old ways”
Michael Porter


The Company Agenda
– To Create Pressure for Innovation
– To Be Strong at Home
– To Go Global

The Role of Government
– Should Act Like A Referee
– Should Act Like A Coach
– Create an environment that challenges
companies to compete successfully.
Clusters are Prevalent
The diamond of National Advantage promotes
industry clusters and the presence of strong
industry rivals within the same host nation.
Disagreement
Kenichi Ohmae disagrees on the importance
of the role of the nation.
He believes successful companies transform
themselves into truly global firms.
Possible Exam Questions

Define and defend the basic concepts of the
Diamond of National Advantage.

Use the Diamond of National Advantage to
analyze a dominant industry in a specific
country
Chapter 3
The Porter Competitive Model
for
Industry Structure Analysis
Key Chapter Objectives
• Introduce the structure and use of the Porter
Competitive Model.
• Introduce the structure and use of Porter’s
Value Chain.
• Illustrate how these models can be used to
evaluate a company and its competitive ability
within an industry.
• Draw conclusions between the use of
Information Systems, and the two Porter models.
The Porter Competitive Model
• Used to understand and evaluate the structure of an
industry’s business environment, and the threats of
competition to a specific company.
• Breaks an industry into small parts to avoid defining
an industry too narrowly.
• The model was not designed to assess a companies
use of Information Systems, yet it can pinpoint strategic
areas to deploy Information Systems.
Porter Competitive Model
Potential
New Entrants
Bargaining
Power
of Suppliers
Intra-Industry
Rivalry
Strategic Business Unit
Bargaining
Power
of Buyers
Substitute
Products
and Services
Source: Michael E. Porter
“Forces Governing Competition in Industry
Harvard Business Review, Mar.-Apr. 1979
Figure 3-1
Competitive Strategies
Countering Competitive Forces
Basic Objectives
• Create effective links with consumers and
suppliers.
• e.g. Improving your supply chain and
locking in customers.
• Build barriers to new entrants and substitutes.
Two Strategies to Accomplish
The Basic Objectives
• Differentiation Strategy
• Provide a superior product.
• If done correctly allows for premium pricing.
• Usually more costly to implement.
• Low-Cost Strategy
• Leverage economies of scale, past experience, and
alliances to provide the cheapest prices.
• IS can play a key role.
Supporting Strategies
Augment Competitive Strategies
• Innovation – Can help contribute to product
differentiation and operational efficiency.
• Growth – Certain industries reward firms exhibiting
explosive growth (ex. Federal Express).
• Alliance – Allows strategies to be used which would be
impossible to implement alone (ex. Airlines sharing
routes to expand reach).
The Porter Value Chain
• Focuses on a companies INTERNAL operations,
specifically efficiency and added value.
• Identifies sources of competitive advantage.
• Objective:
• Maximize value adding activities.
• Minimize non-value adding activities.
Porter Value Chain
Manufacturing Industry Value Chain
Research
and
Development
Production
Engineering
and
Manufacturing
Sales
Marketing
and
Distribution
Service
Value Chain & Information Systems
• Value chain breaks business operation into functional
pieces.
• These pieces can be analyzed to see if IS may add
efficiency.
• Nearly all of the pieces can benefit from the correct use
of IS, given the necessary talent and adequate funding.
In Closing
• Porter’s models have become standard analysis tools.
• Combined they provide both external and internal
visibility.
• Both must be used carefully to avoid negative results
or misdirection.
Chapter 3
Porter Competitive Model
for
Industry Structure Analysis
The Plan for Today
• Address the Concepts of the Porter Competitive
Model.
• Provide some industry examples using the
Competitive Model.
• Address the Value Chain conceptually and with
industry examples.
• Gain necessary understanding so can revisit each
of these using the airline industry as the example
in Chapter 4.
Awareness of competitive forces can
help a company stake out a position
in its industry that is less vulnerable
to attack.
Michael E. Porter
Competitive Strategy
Porter Competitive Model
• Was not developed for IS use.
• Breaks an industry into logical parts,
analyzes them and puts them back together.
• Avoids viewing the industry too narrowly.
• Provides an understanding of the structure
of an industry’s business environment.
• Provides an understanding of competitive
threats into an industry.
Two Key Questions
1. How structurally attractive is
the industry?
2. What is the company’s relative
position within the industry?
Why Do You Care?
The collective strength of the industry forces
determines the ultimate profit potential of an
industry.
The strongest competitive forces are of greatest
importance in formulating competitive strategies.
Every industry has an underlying structure, or a
set of fundamental economic and technical
characteristics that gives rise to these competitive
forces.
Why Do You Care?
This view of competition pertains to industries
selling products and those dealing in services.
A few characteristics are often key to the strength
of each competitive force.
Key Industry Analysis Factors
• Collecting the data.
• Determining which data is important.
• Selecting an appropriate overall approach.
• Deciding on the logical starting point.
Basic Objective of the SBU
1. To create effective links with
buyers and suppliers.
2. To build barriers to new entrants
and substitute products.
Porter Competitive Model
Potential
New Entrants
Bargaining
Power
of Suppliers
Intra-Industry
Rivalry
Strategic Business Unit
Bargaining
Power
of Buyers
Substitute
Products
and Services
Source: Michael E. Porter
“Forces Governing Competition in Industry
Harvard Business Review, Mar.-Apr. 1979
Figure 3-1
Definitions
New Entrant:
An existing company or a startup that has not
previously competed with the SBU in its
geographic market. It can also be an existing
company that through a shift in business strategy
begins to compete with the SBU.
Substitute Product or Service:
An alternative to doing business with the SBU. This
depends on the willingness of the buyers to
substitute, the relative price/performance of the
substitute and/or the level of the switching cost.
Rivalry Likelihood?
• Profit margins.
• Industry growth rate and potential.
• A lack of capacity to satisfy the market.
• Fixed costs.
• Competitor concentration and balance.
• Diversity of competitors.
• Existing brand identity.
• Switching costs.
• Exit barriers.
A Buyer Has Power If:
1. It has large, concentrated buying power that enables
it to gain volume discounts and/or special
terms or services.
2. What it is buying is standard or undifferentiated and
there are multiple alternative sources.
3. It earns low profit margins so it has great incentive
to lower its purchasing costs.
4. It has a strong potential to backward integrate.
5. The product is unimportant to the quality of the
buyers’ products or services.
A Supplier Has Power If:
1. Its product is unique or at least differentiated.
2. It has built up switching costs.
3. It provides benefits through geographic proximity to
its customers.
4. It poses a definite threat to forward integrate into
its customers’ business.
5. A long time working relationship provides unique
capabilities.
Possible Barriers to Entry
• Economies of scale.
• Strong, established cost advantages.
• Strong, established brands.
• Proprietary product differences.
• Major switching costs.
• Limited or restrained access to distribution.
• Large capital expenditure requirements.
• Government policy.
• Definite strong competitor retaliation.
Substitute Threats
• Buyer propensity to substitute.
• Relative price/performance of substitutes.
• Switching costs.
Competitive Strategies
• What is driving competition in my current or
future industry?
• What are my current or future competitors
likely to do and how will we respond?
• How can we best posture ourselves to achieve
and sustain a competitive advantage?
Strategy Options
According to Michael Porter
Primary Strategies
1. Differentiation
2. Least Cost
Supporting Strategies
1. Innovation
2. Growth
3. Alliance
Can Information Systems:
1. Build barriers to prevent a company from entering
an industry?
2. Build in costs that would make it difficult for a
customer to switch to another supplier?
3. Change the basis for competition within the
industry?
4. Change the balance of power in the relationship
that a company has with customers or suppliers?
5. Provide the basis for new products and services,
new markets or other new business opportunities?
Porter Competitive Model
Heavyweight Motorcycle Manufacturing Industry
North American Market
• Parts Manufacturers
• Electronic Components
• Specialty Metal Suppliers
• Machine Tool Vendors
• Labor Unions
• IT Vendors
Bargaining
Power of
Suppliers
• Automobiles
• Public Transportation
• Mopeds
• Bicycles
• Foreign Manufacturer
Potential
New Entrant
Intra-Industry Rivalry
SBU: Harley-Davidson
Rivals: Honda, BMW,
Suzuki, Yamaha
Substitute
Product or
Service
• Established Company
Entering a New Market
Segment
• New Startup
Bargaining
Power of
Buyers
• Recreational Cyclist
• Young Adults
• Law Enforcement
• Military Use
• Racers
Business Strategy Model
Asks Fundamental Questions
1. What products and/or services do we intend to offer?
2. What price range of products do we intend to offer?
2. What customer targets do we intend to pursue?
3. What geographic markets do we intend to address?
4. How will we obtain products to sell to our customers?
5. How will we deal with sales to our customers?
6. What company structure do we intend to create?
7. What information systems approach will we take?
Business Strategy Model - Motorcycle Manufacturing Industry
Product Strategy
Type/Purpose/Size
Heavyweight Off-Road Dual Purpose Road Racing Café Racer
Price Strategy
Entry Level
Law Enforcement
Moderate
Market Strategy
Premium
Military Recreational Professional Young Adult
North American
Europe
Japan/Asia
Manufacturing Strategy
Vertically Integrated
Vendor Emphasis
Latin America
Outsource
Sales/Distribution Strategy
Distributors
Independent Dealers
Franchised Dealers
Company Structure
Independent
Alliances
Joint Ventures/Subsidiaries
Information Systems
Engineering
Product Design
Manufacturing
Sales/Distribution
Business
Business Strategy Model – Food Service Industry
Product Strategy
Limited
Specialized
Products
Broad Range
of Specialized
Products
Wide Range of
Non-specialized
Products
Health
Conscious
Products
Customer Strategy
Young Adults
Parents
Teenagers with Social
with
Focus
Kids
Time
Conscious
Adults
Leisure
Adults
Senior
Citizens
Store Format Strategy
Dine In
Wait Service
Dine In
Counter Service
or Buffet
Take Out
Drive
Through
Vendor Strategy
Competitive
Bids
Long Term
Contracts
Alliances
Vertically
Integrated
Market Strategy
Local
Regional
National
International
Ethnic
Focus
Company Structure Strategy
Independent
Alliances
Franchises
Subsidiary
Information Systems Strategy
Customer
Systems
Store
Logistical
Systems
Product
Analysis
System
Business
Systems
Strategy Options
According to Michael Porter
Primary Strategies
1. Differentiation
2. Least Cost
Supporting Strategies
1. Innovation
2. Growth
3. Alliance
Porter Competitive Model
Tips
1. To incorrectly define the industry can cause major
problems in doing Section I of the analysis term paper.
2. You must identify the specific market being evaluated.
3. Your analysis company is the Strategic Business Unit.
4. Identify rivals by name for majors, by category for minor
rivals if needed to present the best possible profile of
rivals.
Porter Competitive Model
5. Be sure to address the power implications of both
customers and suppliers. Power buys them what?
6. Identify buyers and suppliers by categories versus
companies.
7. Summarize your Porter Model analysis.
Computer Industry
Why is this industry more of a challenge to
evaluate using the Porter Competitive
Model?
Old Computer Industry
Layer 5
Distribution
Layer 4
Application
Software
Layer 3
Operating
System
Software
Layer 2
Computing
Platforms
Layer 1
Basic
Circuitry
IBM
DEC
HP
Fujitsu
NCR
Figure 3-3
The New Computer Industry
Layer 5
Distributors
Computer
Dealers
Super
Stores
Mass
Clubs
Merchandisers
Mail
Order
Value-add
Resellers
Direct
Sales
Force
Other
Layer 4
Applications
Lotus 1-2-3
•Spreadsheets
•Word Processors
•Database
Layer 3
Operating
System
Software
Layer 2
Computer
Platforms
Layer 1
Microprocessor
MS DOS
Novell Netware
IBM
Compaq
Intel X86
Microsoft Excel
Windows
Quattro Pro
OS/2
Banyan
Unix
IBM
Other Intel-Based PCs
Motorola
Apple
Others
Apple Macs
RISC
Other
Power PC
Figure 3-4
The Computer Industry
Layer 6
Sales and
Distribution
Layer 5
Application
Software
•Enterprise
•Specific
Layer 4
Database &
Networking
Software
Layer 3
Operating
System
Software
Layer 2
Computer
Hardware
Platforms
Layer 1
Microprocessor
Computer
Stores
Super
Stores
Mass
Mail
Merchandisers Order
Value-add
Resellers
Direct
Sales
Force
Internet
Direct
Desktop Suites Enterprise Resource Planning Supply Chain Management Other
Word Processors Spread Sheets Publishing Groupware Data Warehouse Other
LAN, WAN and Internet Software Interfaces, Browsers and Search Engines
Hierarchical Database
Windows
Unix
Relationship Database
Linux
Supercomputer Mainframe Midrange Workstation PC
Intel X86
Motorola
Apple
Handheld Device
RISC
Power PC
The Computer (IT/IS?) Industry
as seen by IBM in 2002
1. Services
2. Applications Software
3. Middleware Software
4. Systems
The Computer Industry
IT Consulting
Systems Integration
Outsourcing
Training and Education
Financing
Services
Maintenance
Web Sites
E-Commerce
Personal Productivity
Engineering & Design
Supply Chain
Human Resources
CRM*
Business Intelligence
Applications
Software
*Customer Relationship Management
Systems Management
Application and Transaction Servers
Collaboration & Messaging
Middleware
Software
Database
Operating System
Memory
Networking
Displays
Processors
Storage
Systems
Source: Who Says Elephants Can’t Dance by Louis Gerstner
Computer Industry
Hardware
• Processors
• Input/Output Devices
• Storage Devices
Networking Equipment?
Multiple processor
segments in the computer
industry.
Processor companies
versus specialized
hardware companies.
Software
• Systems Software
• Operating Systems
• Database Systems
• Network Systems
• Utility Software
• Performance and
Security Software
• Development Software
• Programming Languages
• CASE Software
• Applications Software
Hardware vendors
versus independent
software companies.
Applications Software
Specific application software to do numerous things.
Running on a range of processors.
Applications suites (integrated applications) Some call
these integrated enterprise applications
Is game software from Sony a part of the computer
industry?
Is software to run numerical control machine tools part of
the computer industry?
Is software to analyze automobile smog tests part of the
computer industry?
Worldwide Computer Hardware Sales
2000
1999
1998
Supercomputer
1997
Mainframe
Midrange
Workstation
1996
Personal Computer
1995
Source: Dataquest
1994
Millions of Dollars
1993
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Worldwide Hardware Sales
2002
PCs
Total Hardware
2001
Billions of $s
2000
0
100
200
300
Billions of $s
Source: Dataquest
What is a PC?
1. A desktop tool—word processor, spreadsheet,
publishing tool, data store.
2. An entertainment device.
3. Communication device—email.
4. Information source—Internet sources.
5. A collaboration tool.
PC Industry Segment
1. Passed $100 billion in sales in the first ten years.
2. Growth and competition was based on industry standards
like never before.
3. This has spawned thousands of niche companies.
4. The PC has fundamentally restructured the Computer
Industry.
5. Industry pioneers believe the revolution is no more than
half over.
Change Relative to Selling PCs
1. Languages
2. Application Packages
3. Connectivity and Compatibility
4. Multimedia
5. Communication Device--Groupware
PC Industry Change
• Atari
• Dell
• Cromemco
• Gateway
• Fortune Systems
• IBM
• Wicat Systems
• HP (Compaq)
• Kaypro
• NEC
• Morrow Designs
• Osborne Computer
• Victor Technologies
The Future Computer Industry
1. Traditional US Companies (large).
2. Asian Electronic Companies.
3. The New Strategy Companies.
Why has the US continued to be the world leader in
the computer industry?
Porter Value Chain
Basic Concept:
1. Deals with core business processes.
2. Enables tracking a new idea to create a new
product and/or service from origination all the
way to customer satisfaction.
Porter Value Chain
Manufacturing Industry Value Chain
Research
and
Development
Production
Engineering
and
Manufacturing
Sales
Marketing
and
Distribution
Service
Retail Industry Value Chain
Partnering
with
Vendor
Managing
Buying
Inventory
Distributing Operating
Inventory
Stores
Marketing
and
Selling
Value Chain Things to Remember
1. Value to customer objective is not clear.
2. Relay team concept is too time consuming and doesn’t
work in the current competitive environment.
3. Maximize the value-add activities and eliminate as
much as possible the things that do not add value.
4. Make sure that each step in the overall process (each
function) does things consistent with the overall
objective of value to customer.
SUPPORT ACTIVITIES
Generic Value Chain
FIRM INFRASTRUCTURE
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
INBOUND
LOGISTICS
OPERATIONS OUTBOUND
LOGISTICS
MARKETING
AND SALES
SERVICE
PRIMARY ACTIVITIES
Adapted with the permission of the Free Press, an imprint of Simon & Schuster Inc.. from
COMPETITIVE ADVANTAGE: Creating and Sustaining Superior Performance by Michael Porter. Copyright
© 1985 by Michael E. Porter.
Figure 3-6
Property and Casualty Industry Value Chain
FIRM
INFRASTRUCTURE
-Financial Policy
HUMAN
RESOURCE
MANAGEMENT
-Regulatory Compliance
- Accounting
Agent
Training
Actuary
Training
Actuarial Methods
Investment
Practices
TECHNOLOGY
DEVELOPMENT
- Legal
Product
Development
Market Research
Claims
Training
Claims
Procedures
I/T
Communications
PROCUREMENT
•Policy Rating
• Underwriting
• Investment
•Independent
Agent Network
•Billing and
Collections
•Policy Sales
•Policy Renewal
•Agent Management
•Advertising
INBOUND
LOGISTICS
OPERATIONS
OUTBOUND
LOGISTICS
MARKETING
AND SALES
•Claims Settlement
•Loss Control
SERVICE
Included with permission of Michael E. Porter based on ideas in Competitive Advantage: Creating and Sustaining
Superior Performance, copyright 1985 by Michael E. Porter.
Figure 3-7
Technologies in the Value Chain
Information System Technology
Planning and Budgeting Technology
Office Technology
FIRM
INFRASTRUCTURE
Training Technology
Motivation Research
Information Technology
HUMAN
RESOURCE
MANAGEMENT
Product Technology
Computer-Aided Design
Pilot Plant Technology
TECHNOLOGY
DEVELOPMENT
Software Development Tools
Information Systems Technology
Information Systems Technology
Communication System Technology
Transportation System Technology
PROCUREMENT
•Transportation
Technology
•Material Handling
Technology
•Storage and
Preservation
Technology
•Communication
System
Technology
•Testing Technology
•Information
Technology
INBOUND
LOGISTICS
•Basic Process
Technology
•Materials
Technology
•Machine Tools
Technology
•Materials Handling
Technology
•Packaging
Technology
•Testing Technology
•I/nformation Tech.
OPERATIONS
•Transportation
Technology
•Material Handling
Technology
•Packaging
Technology
•Communications
Technology
•Information
Technology
•Multi-Media
Technology
•Communication
Technology
•Information
Technology
•Diagnostic and
Testing Technology
•Communications
Technology
•Information
Technology
OUTBOUND
LOGISTICS
MARKETING
AND SALES
SERVICE
Adapted with the permission of the Free Press, an imprint of Simon & Schuster Inc.. from
COMPETITIVE ADVANTAGE: Creating and Sustaining Superior Performance by Michael Porter. Copyright
© 1985 by Michael E. Porter., p. 167.
Figure 3-8