Michael Porter Biography
Michael Porter is an American eacademic famous for his sight on economics, business strategy and social causes. He is the Bishop William Lawrence University Professor at Harvard Business School, and he was one of the founders of the consulting firm The Monitor Group and FSG, a social impact consultancy. He is credited for creating Porter’s five forces analysis, which is instrumental in business strategy development today.
As an economist and associate professor at the Harvard Business School, he authored, ‘How Competitive Forces Shape Strategy’ in in 1979. It was published by the Harvard Business Review. The book served as the stepping stone for his famous Five Forces framework. In 1980, he came out with the book titled, ‘Competitive Strategy’, which was published by New Press, New York. This was one of his most acclaimed books.
He also authored the book “Competitive Advantage” which was published by New Press, New York in 1980. The book highlighted the strategies employed to tackle competition and beyond. From 1986 to 1987, he published his books on business competition and strategy. The books included, ‘Competition in Global Industries’ and ‘From Competitive Advantage to Corporate Strategy’.
In 1991, he also authored a piece for the winter special issue of the ‘Strategic Management Journal called, ‘Towards a Dynamic Theory of Strategy’. In 1996, he authored a piece for the Harvard Business Review titled, ‘What is Strategy’. In this piece, he delved into the various concepts that dealt with business strategy. He was even awarded for this masterpiece.
Come 1997, he co-authored the piece, ‘How Much Does Industry Matter, Really?’ along with McGahan, A.M. It was published in the summer special issue of the ‘Strategic Management Journal’. In 1998, he published his book titled, ‘On Competition’. The book gave a detailed account on the core concepts of strategy and competitiveness of location and other aspects of competitive strategy. In 2002, he published his work titled, ‘Strategy and the Internet’, which was published by the Harvard Business Review. The core essence of this piece of writing was the importance of the new technology – internet.
In 2006 December he came out with, ‘Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility’. The work was published by the Harvard Business Review. In 2006, in collaboration with Teisberg, E.O he co-authored the book, ‘Redefining Health Care: Creating Value-Based Competition On Results’. The book was published by the Harvard Business School Press.
Published in January 2008, his book, ‘The Five Competitive Forces That Shape Strategy’ was immensely well-received. The book provided a detailed analysis and business strategy development, deriving five forces that determine the competitive intensity and attractiveness of the market.
In 2011, he wrote a follow up piece to the Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility’, titled ‘Creating Shared Value: Redefining Capitalism and the Role of the Corporation in Society’. He has played an active role in U.S. economic policy with the Executive Branch and Congress, and has led national economic strategy programs in numerous countries. Currently, he is working with the Presidents of Rwanda and South Korea
Michael Porter Age
He was born on May 23, 1947, He is currently 72 years old as of 2019. His birth sign is Gemini.
Michael Porter Early Life|Education
Porter was born in Ann Arbor, Michigan, United States. He graduated from Princeton University in 1969 with BSE honours in mechanical and aerospace engineering. It was at Princeton that he was elected to Phi Beta Kappa and Tau Beta Pi. He graduated from the Harvard Business School, obtaining an MBA with a high distinction in 1971. Two years later he secured a Ph.D. in business economics from Harvard University.
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Michael Porter On Competitive Strategy
Porter described the theory in his 1985 book “Competitive Advantage: Creating and Sustaining Superior Performance”. The basis was formed by three strategies, namely cost leadership, differentiation and focus. He divided the latter into cost focus and differentiation focus.
1. Cost Leadership
You target a broad market (large demand) and offer the lowest possible price. There are 2 options within this course. You can opt to keep costs as low as possible; or ensure that you have a larger market share with average prices. In both cases, the point is to keep the company costs as low as possible. The consumer price is a different story.
Organisations that apply this strategy successfully usually have substantial investment capital at their disposal, efficient logistics and low costs when it comes to materials and labour. The organisation is generally focused on internal processes.
2. Differentiation
You target a broad market (high demand), but your product or service has unique features. With this strategy, you make your product as exclusive as possible, making it more attractive than comparable products offered by the competition. Succeeding using this strategy requires good research & development, innovation and the ability to deliver high quality. Effective marketing is important, so that the market understands the benefits of your unique product. It’s important to be flexible and to be able to adapt quickly in a changing market, or you risk the competition beating you at it. Such an organisation is focused on the outside world and has a creative approach.
3. Cost Focus
You target a niche market (little competition, ‘focused market’) and offer the lowest possible price. In this strategy, you choose to target a clear niche market and through understanding the dynamics of the market and the wishes of the consumers, you can ensure that the costs remain low.
4. Differentiation Focus
You target a niche market (little competition, ‘focused market’) and your product or service has unique features. This strategy often involves strong brand loyalty among consumers. It’s very important to ensure that your product remains unique, in order to stay ahead of possible competition. In order to choose the right strategy for your organisation, it’s important be aware of the competencies and strengths of your company.
Michael Porter Wife|Married
Porter is married to Debbie, with whom he has two daughters with.
Michael Porter Net Worth|Salary
Michael has an estimated net worth of 4.8 million dollars as of 2019.
Michael Porter Books
- Competitive Strategy: Techniques for Analyzing Industries and Competitors
- Competitive Advantage: Creating and sustaining superior performance
- The Competitive Advantage of Nations
- HBR’s 10 Must Reads on Strategy
- Redefining health care
- Cases in competitive strategy
- Can Japan Compete?
- Strategy and Competition: The Porter Collection (3 Items) Michael Porter
- Redefining German Health Care: Moving to a Value-Based System Michael Porter
- Administrative Regulation Versus Market Regulation in the Diversified Company Michael Porter
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Michael Porter Awards
- He was the recipient of the honorary degree from McGill University in 2009.
- He is the recipient of the Jose Dolores Estrada Order of Merit, which is the one of the highest civilian awards that is conferred by the Government of Nicaragua.
- He has been the recipient of the McKinsey Award six times.
- He was appointed Harvard University Professor, the highest professional recognition that can be awarded to a Harvard faculty member.
- He is a Fellow of the Strategic Management Society.