Understanding Michael Porter: The Essential Guide to Competition and Strategy

by Joan Magretta

“The essence of strategy,” Porter often says, “is choosing what not to do.”

In the vast majority of businesses, there is simply no such thing as “the best.”

Instead of competing to be the best, companies can—and should—compete to be unique.

The first test of a strategy is whether your value proposition is different from your rivals. If you are trying to serve the same customers and meet the same needs and sell at the same relative price, then by Porter’s definition, you don’t have a strategy.