Michael Porter and his theory of competitive advantage. Model of the five forces of competition by Michael Porter. External links and notes. Consulting companies and government agencies

Since the time of Adam Smith, the theory of market relations has evolved significantly. Both the theoretical base and applied industries are developing. In the field of competition studies, Michael Porter's five forces analysis is currently popular. With its help it is possible to make detailed analysis environment and develop a countermeasure strategy. It should be noted that this is not a panacea, and not even the only theory in the field of studying competitiveness.

The history of the emergence of the model of five competitive forces M. Porter

Comprehension of any theory is inalienable from understanding the way of thinking of its author. Michael Eugene Porter was born in 1947 in Michigan, United States of America. Eternal excellent student. Winner of many awards. Has seven honorary doctorates. He is currently a professor in the department at Harvard Business School in Boston.

This is a thin gray-haired man in all photographs, invariably wearing a tie. He travels a lot around the world with lectures and seminars. An excellent speaker. He skillfully manages the attention of the audience and feels well the mood of the audience. During the lecture, he can relax, take off his tie. He speaks with enthusiasm. His theory of the five forces of competition has been around for about forty years and M. Porter continues to work on its improvement and adaptation to modern conditions of a market economy.

Dr. Porter's theory was used in their work by such large companies as DuPont, Royal Dutch Shell, Procter & Gamble, Nevskaya Cosmetics and many others.

A summary of Michael Porter's five-factor model

The essence of Porter's theory is in the differentiation of competitive forces and the analysis of individual indicators. The theory is successful, judging by the fact that M. Porter collaborated with many, and at the same time the company has always achieved success in the competition.

M. Porter sees the company's weakness in the fact that managers look at the problem of competition narrowly, seeing evil for themselves only in firms that occupy the same cell in the economy with them. Whereas competition is the sum total of the underlying forces that affect the economic viability of a company. Among the competitive forces in Porter's model are:

  1. Intensity of competition in the industry.
  2. The emergence of substitutes.
  3. Problems with suppliers.
  4. Consumer problems.
  5. The threat of the emergence of new competitors.

During the lectures, Porter draws a diagram with just chalk on a blackboard. V teaching aids This is often the portrayal of the theory of the five forces of competition.

Each influencing factor can be considered separately.

Intensity of competition in the industry

The model involves analyzing the industry and what factors are behind competition problems. M. Porter talks about the "threshold of entry." As an example, he cites air transportation. Starting a business in this area, from his point of view, is quite easy: You just need to have one plane. The first regular flight can be launched. However, there are many airlines that provide the same services. The passenger can choose, and if the ticket is cheaper, take another flight in an hour. Or it will use another mode of transport, etc. With such a threshold for entering a business and regulated competition, the profitability is quite low. The intensity of competition is also determined by:

  1. A large number of similar companies performing the same type of activity or providing the same types of services.
  2. Typical similarity of manufactured goods.
  3. The level of costs for the production of goods and services (consistently high cost).
  4. High entry barrier (market maturity and saturation).

Profitability also depends on the internal structure of the industry. And susceptibility to "stormy effects of external forces."

The emergence of substitutes

There is always the possibility of new types of goods for the same purpose appearing on the market. The task of management is to anticipate the possibility of commodity substitution and to respond in a timely manner to such facts. A new product on the market may be cheaper in terms of cost or meet other, increased requirements. The threat of the appearance of a new product can be prevented if the pricing and marketing policy of the company is properly organized:

  1. Price competition can shift the buyer's attention to low prices instead of focusing on quality.
  2. Advertising attacks draw attention to the product and distract from the possibility of its substitution.
  3. The production of new attractive products within the company reduces the possibility of commodity substitution.
  4. Improving the quality of service in the sale and distribution of the product will reduce the competitiveness of the substitute.

Problems with suppliers

Suppliers have the same competitive environment defined by the same criteria. Their strength is determined by:

  1. Availability large companies-suppliers. Possibility of monopoly.
  2. The uniqueness of the supplied goods.
  3. An option when the industry where the goods are supplied is not the main one for the supplier.
  4. Consistency. The lack of supplies will lead to the liquidation of the company itself.
  5. Ability to join a buying firm through vertical integration.

Suppliers can:

  1. Increase the price of your goods.
  2. Reduce the number of products and services provided.

Consumer factor

Buyers influence competitiveness no less than other factors... Their strength depends on such factors:

  1. Cohesion of consumers. Often - their organization around a society.
  2. The importance of the product to the consumer.
  3. The breadth of areas of product use.
  4. Awareness level about substitutes and product applications.

A strong consumer can:

  1. Put pressure on prices to bring them down.
  2. Demand high quality.
  3. Demand better service.
  4. Bumping manufacturers against each other.

The threat of the emergence of new competitors

The risk of new players appearing in an existing niche is determined by economic attractiveness and the threshold for entering the business. Such factors influence:

  1. Price attractiveness of entering the market.
  2. Low cost of organizing production (services).
  3. Ease of entering the business (entry threshold).

How the model is used: analyzing the situation and building a strategy

M. Porter explains that the principle of his method of five forces of competition lies in a systematic and integrated approach to building a strategy for relationships with all market participants.

For successful and competitive work it is necessary:

  1. Analysis of the industry, identification of the factors behind the competition.
  2. Determination of the structure of the industry. Its attractiveness and threshold of entry.
  3. Understanding the dynamics of the industry. How quickly changes occur, the direction of movement.

The circle of stakeholders is expanding as much as possible. The main strategic challenge in all industries is to find a unique need that the company will satisfy with its activities. For this, the procedure is determined:

  1. Determining the company's priorities, for example, making a profit, achieving a monopoly, expanding, etc.
  2. Highlighting the circle of the most powerful factors from the five forces.
  3. Concretization of the problem facing the company in terms of specific strength.
  4. Selection of factors that can be mitigated.
  5. Drawing up an action plan to bring the plan to life.

An example of mathematical factor analysis

The assessment of forces can be carried out mathematically, for example, in the form of a table. Here is an example of a calculation for the construction industry, specifically for installers (assemblers) plastic windows.

Evaluation criteria are made on a ten-point system. The final rating is calculated using the formula:

The calculation can be carried out independently for several sources, by different authors and for several industries, after which the priority area is determined.

Table: Assessment of Competitive Forces in the Construction Industry

According to the table, we see that the industry is attractive. Quite high competition - 8 and the possibility of new competitors - 6. Consumer power is low "1" due to high demand for plastic windows. The possibility of the appearance of commodity substitutes is below average. In the market of suppliers, and these are manufacturers of plastic windows, a monopoly, suppliers have a strong influence. They can dictate their own terms. From these data, conclusions follow, and we can recommend:

  1. Our influence on existing competitors is small. We can fight with quality, but at the moment it is not cost-effective. Rating "8". Let's analyze the possibility of price reduction.
  2. The possibility of the emergence of substitutes is small. There is a market for plastic and wooden windows. The consumers are identified. Recommended advertising campaign on the advantage of our plastic, monitoring of prices and services of related companies.
  3. Supplier power is high due to the monopoly. This is a very strong influence on the market. Threat mitigation is required. Suppose there are funds. The share in existing production to influence supplies or organize a new production of finished goods.
  4. The consumer is not organized. Demand exceeds supply. The influence of this factor on this stage can be neglected.
  5. The possibility of new competitors emerging is high. To take measures to reduce the attractiveness of the market for new enterprises - to adjust the quality and price policy.

Video: a detailed description of the choice of a competitive strategy for Porter

Modified Porter's model for countries and regions, "national diamond"

Dr. Michael Porter works not only in the field of mesomedia (M. Porter's terminology) - relations at the company level. He developed a similar approach for the macroeconomics of countries and individual peoples.... To analyze the situation and the prospects for the development of states, he suggested using the "competitive diamond".

The analysis of the economy of states is based on the concepts of the initial state of the economy, conditions of demand, the state of individual industries and the strategy of the state. The key question is efficient use natural and national peculiarities with the attraction of foreign technologies and investments.

In Russia, Dr. Porter became widely known after 2005, when, at the invitation of the government, he was engaged in research on the country's competitiveness. Dr. Michael Porter's report was published in 2006, but it is known in full only to specialists. From Porter's point of view, the main drawback is the raw materials orientation of the Russian economy. And focus on large vertically integrated companies. This thesis was then repeatedly played up in the media of different countries. Porter criticizes the idea of ​​national leaders, from his point of view, she died with General Motors. The backbone of the economy is mobile companies.

Key aspects of Michael Porter's theory of five competitive forces

From the last lectures of Michael Porter, we can conclude that from his point of view, the main thing is:

  • An integrated approach to addressing the importance and impact of the various forces of competition.
  • Orientation of the entire management team to ultimate goal and ways to achieve it.
  • The openness of the company. The strategy doesn't have to be secret. Personal experience Dr. M. Porter shows that it does not matter at all whether competitors are aware of the adopted strategy. But openness in this issue contributes to the overall adjustment of management actions in a given direction.
  • An intuitive approach. Porter himself believes that actions to counter the forces of competition should be intuitive and largely spontaneous.
  • Changes over time. Impact factors are variable in nature and subject to temporary adjustment.

At all levels of competition, M. Porter uses the concepts of positive and negative competition. An example of a positive are those actions of the company, as a result of which the quality of goods or services improves.

In order to make a company a leader in any area, the approach is general. This is a differentiated difference between the company and other enterprises, the concentration of management on the main goal and the use of successful strategy in the field of competitiveness.

Michael Porter is a renowned economist, researcher, writer, and teacher. Throughout his career at Harvard Business School, he faced economics and society, including market competition and company strategy, economic development, health and the environment.

His extensive research in the field economic competition widely recognized in governments, corporations, academia around the world. They have received numerous awards.

Professor Porter is the recipient of twenty-four honorary doctorates and several national and state awards. He received the world's first economic development award from the United States Department of Commerce and was elected an honorary member of the Royal Society of Edinburgh and other high-profile societies.

In 2000, Porter was named professor at Harvard University - the highest title that can be awarded to a teacher at this educational institution.

Some biographical facts

In his younger years, he was fond of football and baseball, participated in competitions from his state. He traveled extensively around the world.

At Princeton, he played golf among college students. Graduated from Princeton University in 1969 with a thorough study of aerospace and mechanical engineering.

In 1973 he received his Ph.D. in business economics from Harvard University. Porter served in the US Army Conservation Reserve as a captain.

Over the years, he maintains an inexhaustible interest in aesthetics and business, music and art, working on strategy issues with art organizations and aspiring musicians.

Today Professor Porter and his two daughters live in Brooklyn, Massachusetts.

Porter's five forces

It is a business analysis model that helps explain why different industries are able to support different levels of profitability. The model was originally published in Michael Porter's book Competitive Strategy: Methods for Analyzing Industries and Competitors in 1980.

The model is widely used to analyze the industry structure of a company as well as its corporate strategy. Michael Porter has identified five undeniable forces that play a role in shaping every market and industry on a global scale. Forces are often used to measure the intensity of competition, the attractiveness and profitability of an industry or market.

These forces are:

  1. Industry competition.
  2. Potential for new entrants to the industry.
  3. The power of suppliers.
  4. Customer power.
  5. The threat of substitute products.

Understanding Porter's 5 Forces and applying them to the industry allows the company to adjust its business strategy to better use resources to generate higher returns.

Achievements and success

One of the most influential management gurus of this century, Michael Porter is recognized as the father of corporate strategy and management. Evidence of this is the fact that on the shelf of every successful businessman there are his books, which are a huge opus in the field of competitive strategy and strategic action companies.

Porter's research found universal acceptance. His ideas are incorporated into the curriculum of every prestigious business school around the world. He is responsible for creating the foundation for modern business strategy courses and is a strategic advisor to many successful and leading American and international companies.

Over the years, Professor Porter has written over 18 books and 125 different articles on the benefits of business and competitive strategy in it. He was a guest columnist for the Wall Street Journal.

Some of his works:

  • "Strategy for the formation of competitive forces";
  • "Competitive strategy";
  • Redefining Health Care: Creating Competitive Value Based on Results;
  • "Strategy and the Internet".

When Porter began studying strategy, he believed that many strategic mistakes were caused by external factors such as consumer trends, or technological changes. He said: “After 25-30 years, I have come to realize that many, if not most, strategic mistakes come from within. The company does it on its own. "

Awards and achievements

In 2009 he received an honorary degree from McGill University.

He is the recipient of the José Dolores Estrada Order of Merit, one of the highest civilian awards awarded by the Nicaraguan government.

Received the McKinsey award six times.

Member of the Society for Strategic Management.


Porter, Michael (1947), Porter, Michael E.

1. Introduction
2. Biographical information
3. Main contribution
4. Evaluation
5. Conclusion

Brief biographical information

Born May 23, 1947 in Ann Arbor, Michigan;
in 1969-1977 was a reservist in the US Army; received the rank of captain;
in 1969 received a degreeBSEfrom Princeton University, followed by an MBA (1971) and a Ph.D. (1973) from Harvard University;
in 1973 he was recruited to Harvard University and in 1981 was promoted to professor;
in 1983-1985 Member of the Presidential Commission on Industrial Competition.

Main works

Interbrand Choice, Strategy and Bilateral Market Power (1976)
Competitive Strategy: Techniques for Analyzing Industries and Competitors (1980)
Competitive Advantage: Creating and Sustaining Superior Performance (1985)
(1986)
The Competitive Advantage of Nations (1990)

Summary

The main Michael Porter's scientific goals was to link enterprise strategy to applied microeconomics, two areas previously considered independently of each other, and to create models and methods for conducting research. His second major book,CompetitiveStrategy(“Competitive Strategy”), revolutionized approaches to enterprise strategy; the third book by M. Porter,Competitive Advantage(“Competitive Advantage”), reflected his move from analyzing competition to creating strong competitive advantages... Later, M. Porter concentrated his efforts on the global application of his strategic principles, including his ideas about the nature of global competition and national determinants of competing power.

1. Introduction

As one of the most influential strategistsMichael Porterlargely determined the main direction of development of the theory of strategy and competition (primarily in a global context). His books on competitive strategy and competitive advantage are read and discussed around the world; you are unlikely to find (at least in the West) an MBA who does not know by heart two of his most famous models - the five forces and the value chain. Based on these basic models, M. Porter performed a simple, but extremely useful analysis of the determinants of competition and the global forces affecting it, as well as the ways and means of ensuring the long-term competitiveness of the enterprise.

2. Biographical information

Michael Porterwas born in 1947 in Michigan in the family of an army officer. He managed to make an amazing scientific career. After graduating from Princeton University, M. Porter received his MBA and Ph.D. degrees from Harvard University, and he completed each stage of his studies with honors. Shortly after defending his doctoral dissertation, he received his first research position at Harvard University, and in 1981, at the age of thirty-four, became a professor. From 1981 to the present, M. Porter continues to work at Harvard.
Throughout his scientific career, M. Porter has been studying competition, its elements and determinants. He has also served as a consultant to many leading companies and advisor to governments in countries such as Canada and New Zealand; in the early 1980s. he became a member of the Industrial Competition Commission, set up by President R. Reagan.

3. Main contribution

In work Competitive Strategy(1980) M. Porter outlined a revolutionary new approach to enterprise strategy. Rejecting the approaches used in this area, M. Porter used the laws of microeconomics to analyze the process of developing a strategy. The first step was to consider strategy as a principle that could be applied not only to individual companies, but to entire sectors of industry. Analysis of the strategic requirements of various industries allowed M. Porter to develop the first of his models, the so-called modelfive forces

The importance of each of the five forces can vary from industry to industry, however, taken together, they determine the importance of long-term profitability. These forces affect the prices set by firms, the level of eligible costs, and the amount of investment required to compete successfully in a given industry. The threat of new competitors entering the market limits market share, and therefore potential profits; bargaining power of buyers and suppliers leads to lower margins of profitability; the availability of substitute goods can lead to a decrease in the output of the industry. The magnitude of each of the five forces is a function of the "sectoral structure", which is also defined as "the main economic and technological characteristics industry ”(1990: 35).
His second model describes the so-calledgeneric (generic) strategies ... According to M. Porter, each company has four main strategic choices. In order to determine the future generic strategy, it is necessary to solve the following two problems: (1) choose the space for competition, that is, decide whether the company will strive for a wide market or will be limited to specific target segments; (2) choose a competitive advantage - cost leadership or product differentiation.

M. Portermakes it clear that there is no single best strategy in any industry; in particular, in the industries he cites as examples - automobile and shipbuilding - different firms use different strategies. While the same five competitive forces operate in each industry, reactions to them, as noted above, can vary.
Finally, M. Porter introduces the concept of the value chain (see Fig. 3). In essence, the value chain takes into account all the actions of the firm that lead to an increase in the value of its product. The main activities are those related to the production of goods and their delivery to the consumer. Ancillary activities directly add value, such as technological development or enable the company to operate more efficiently: “firms gain a competitive advantage through awareness of new lines of business, new procedures, new technologies, or new starting materials” (1990: 41). M. Porter believes that the value chain is extremely important, as it shows that the firm is more than a simple set of activities; all actions of the firm are linked to each other and through these interrelationships the necessary trade-offs can be made. In order to successfully respond to external industry influences and ensure the achievement of competitive objectives, the firm must decide which of these activities should be optimized.

In work Competition in Global Industries (“Competition in Global Industries”) (1986)M. Porterand his colleagues apply the principles of competitive strategy analysis to those operating on international markets companies. As before, building on the results industry analysis M. Porter defines two types of international competition. According to his classification, there aremulti-domestic industries in which each country has its own competition (for example, private banking) andglobal industries ... At the same time, such a global industry is “an industry in which the competitive position of a firm in one country largely depends on its position in other countries, and vice versa” (1986: 18). As examples of such industries, the author singles out the automotive industry and the production of semiconductor technology. According to M. Porter, the key difference between the two types of industries is that international competition in multi-domestic industries is optional - companies can decide for themselves whether to compete in foreign markets or not - while competition in global industries is inevitable.
International competition is characterized by the fact that the activities that form the value chain are distributed among several different countries... Therefore, in addition to choosing the space for competition and the type of competitive advantage, companies can also choose options for their strategy, taking into account the types of activities that form the value chain (where they are carried out, in other words, what is their geographical concentration) and their coordination (how closely they are related to each other) ... This gives rise to four possible options:

      1. high concentration, high coordination (a simple global strategy with a value chain of actions carried out in one region or country, and characterized by high centralization);
      2. high concentration, low coordination (strategy based on export and decentralization of marketing activities);
      3. low concentration, high coordination (strategy of large foreign investments in the implementation of geographically dispersed, but well-coordinated operations);
      4. low concentration, low coordination (country-oriented strategy in which decentralized subsidiaries focus on their own markets).
And there is no single best strategy; each strategy has its own application depending on the nature of competition in the industry, which is determined by five main forces. There may also be cases of scattering of some of the activities that determine the value chain, and the concentration of others; on the other hand, high dispersion may require deeper coordination. It is important to remember that competitive advantage is determined primarily byhow, and not where this or that kind of activity is carried out.

V Competitive Advantage of Nations (“International Competition” (“Competitive Advantages of Nations”)) (1990) M. Porter develops the analysis of competition, defining its national and sectoral determinants. Expressing the belief that “nations will ultimately succeed in individual industries because their home environments are the most dynamic and most active, and stimulate and nudge firms to increase and expand their advantages” (1990: 71) , the scientist identifies the determinants of the competitive forces acting at the national level. He names four determinants that can be found in every country and every industry:

      1. production conditions or the presence in the country of such factors of production as necessary for the production of a qualified work force or industrial infrastructure;
      2. the conditions of demand or the characteristics of the market for a particular product or service;
      3. the existence of supporting or related industries such as internationally competitive suppliers or distributors;
      4. the nature of the firm's strategy, its structure and characteristics of rivalry with other companies, including such factors as the organizational and managerial climate, as well as the level and nature of internal competition.
These determinants form the basis for the forces of competition within industries: “The determinants of national advantage reinforce each other and grow over time, favoring an increase in competitive advantage in the industry” (1990: 132). The nature of competitive advantage often leads to increased concentration both in individual industries (engineering in Germany, electronics in Japan) and in geographic areas (in northern Italy or in the Rhine regions and in Bavaria in Germany).
An important point, on which M. Porter lays special emphasis, is that national competitive advantage is often achieved due to an initially unfavorable environment, when nations or industries are forced to actively respond to a challenge. “Selected factor deficiencies, powerful local buyers, early market saturation, skillful international sourcing, and intense internal rivalry can be critical conditions for creating and maintaining an advantage. Pressures and adversity are powerful drivers of change and innovation ”(1990: 174). It is for this reason that when new industrial forces try to change the existing order, nations experience ups and downs (in terms of competitive advantage).

4. Evaluation

Valuable in their own right, first set forthM. Porterthe idea of ​​competitive advantage is perhaps even more important in the analysis of global competition and the identification of international competitive advantages. As M. Porter himself explains, the use of the found by him fundamental concepts(five forces, generic strategies, value chain) to international strategy has greatly expanded and deepened our understanding of this subject:
International strategy was usually presented as a choice between global standardization and local specifics, or as a contradiction between economic (large high-performance production facilities) and political imperatives (local situation, local production) ... and neither of these characteristics took into account the complexity of the options for choosing an international strategy ... A firm's choice of its international strategy implies a search for a competitive advantage through global configuration / coordination throughout the value chain ... The essence of an international strategy is not to find a compromise between concentration and dispersion, but to weaken or eliminate the contradictions between them (1986: 35).

Removing the choice between full globalization and full localization for company management and providing a basis for developing a more advanced strategy,M. Porteroffers them ample opportunities and additional freedom of maneuver.
Some shortcomings of M. Porter's works have caused a number of fair criticisms. When the demands of free trade and growing exports bring elements of international competition to the domestic markets of virtually all industries, the distinction it introduced between multi-domestic and global industries may disappear. Its determinants of competition are considered by some scientists to be too simplistic and do not allow for sufficient choice; however, the attractiveness of M. Porter's models lies precisely in their simplicity; it encourages readers to use them as a starting point to explore trade-offs and connections between different elements. When used properly, these models provide extremely flexible options conducting an analysis that will help clarify the situation and determine the general direction of movement (especially within the framework of an international strategy).

5. Conclusion

Works by Michael Porter provided firms effective methods analyzing competition and developing strategies in both domestic and international markets. Having determined the point of intersection of economic and strategic objectives,M. Porterdemonstrated the possibilities of their joint research, which allowed him to make an important contribution to the development of our understanding of strategy and competition.

Material from the site

Porter's biography

Michael Eugene Porter is an American economist, leading specialist in the field of competitive strategy and economic development of countries and regions. Professor at Harvard Business School, where he runs a program designed for new CEOs large corporations.
Michael Porter's writings are recognized by governments, corporations and academics around the world.
This is a vivid example of a person who used all his abilities to 100%, skillfully setting priorities and goals in life, achieving them.
Born into the family of an army officer in the town of Ann Arbor, Michigan, on May 23, 1947. Has two daughters, is divorced and lives in Brooklyn, Massachusetts.


Michael Porter's education

State high school to New Jersey, then college.
Graduated from Princeton University in 1969 with a degree in aerospace engineering.
This was followed by Harvard Business School in 1971 with an MA with honors, followed by a PhD in business economics in 1973.


Porter's career

Was appointed by Ronald Reagan Chairman of the Industrial Competitiveness Commission under the President.
Professor Porter has served as a senior advisor to the senior management of many companies, both in the United States and abroad. Here is a far from complete list:

  • Shell,
  • Procter & Gamble,
  • Scott Mirale-Gro,
  • Sysco DuPont Caterpillar - Holland,
  • Semiconductor Manufacturing Company - Thailand.

He currently serves on the board of directors of two public companies: Thermo Fisher Scientific Corporation and Parametric Technology Corporation.
He also serves as Senior Strategy Advisor for the Boston Red Sox, baseball's main team.
Has advised numerous educational and public organizations in terms of strategic development.
He is actively involved in helping governments in the United States and abroad.
Plays an active role in American economic policy of the executive branch, Congress, and international organizations.
Positions held, membership and foundation:
- On the Executive Committee of the Competitiveness Council.
- In the private sector competitiveness of the American organization, the main executive directors large corporations, trade unions and universities.
- Chairman of the Board of Trustees for the US Secretary of Commerce's Annual Corporate Award.
Professor Porter has been an advisor to national leaders in many countries, assessing their competitiveness. These include Armenia, Colombia, Ireland, Nicaragua, Russia, Rwanda, Saudi Arabia, Singapore, Taiwan and the United Kingdom.
He personally led the main studies of the economic strategy of the governments of such countries as: Canada, India, Kazakhstan, Libya, New Zealand, Portugal and Thailand.
Currently, he is the head of the Teaching and Learning Center. K. Roland Christensen.

Awards and prizes

1) 1973 - Harvard University Economics Prize for Research in Industrial Organization.
2) 1980 - Graham and Dodd Awards from Financial analytical organization.
3) 1985 - Prize of the Academy of Management for the book "Competitive Advantage".
4) 1991 - Charles Parlin Award for Outstanding Contribution in Strategy and Marketing from the American Marketing Association.
5) 1997 - Laureate of the Adam Smith Prize, for exceptional contribution to the professional economics of enterprises from the National Association of Business Economists.
6) 2001 - The annual Porter Award is established in Japan. A similar award was established in 1951 in honor of Deming for the contribution and development of quality in manufacturing in Japan.
7) 2003 - the highest award from the Academy of Management for contribution to scientific management.
8) 2005 - Honorary Fellow of the Royal Society of Edinburgh. Also honored with the J.K. Gelbraith Medal of American Economy Agriculture, noted by the South Carolina authorities for providing assistance and assistance in economic development.
9) 2007 - Porter's book "On Health Care" wins the Hamilton Award for Outstanding Work.
10) 2008 - For the first time in history, an unprecedented award from the US Department of Commerce.
Received six awards to them. McKinsey (marketing award), including the first four places in the history of the award were awarded to Porter.
He holds honorary doctorates in the United States and nine other countries around the world.
Received national awards in Spain and Nicaragua.

Michael Porter is an economist specializing in competitive strategies.

Graduated from Princeton University, received a degree from Harvard. At the age of 26, he began working at Harvard Business School, where he was the youngest professor. Michael Porter's awards include seven PhDs, the Adam Smith Award from the National Association of Economists, the Harvard Award for Research on Competitive Forces, several McKinsey Awards and many others. In 2001, Japan established the Michael Porter Special Prize for Economists. Author of the MBA course "Competitive Analysis".

For many years, Porter has studied the nature of competition. Porter's ideas are used all over the world by leaders of large companies and statesmen. He is the author of the theory of competitive advantage between countries. Porter was included by Ronald Reagan on the Presidential Commission on Industrial Competitiveness, advised the governments of many countries, including Russia. One of the main problems Russian economy Porter cited the presence of a huge number of vertically integrated companies.

One of Porter's most cited works is the Five Competitive Forces Analysis Model. Designed by Porter in 1979. She describes ways that help build a competitive advantage in the marketplace. The best competitive strategy for Porter, it is the ability to work out your own path.

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