Michael E. Porter quotes

Michael E. Porter is an American educator, author, and leading authority on competitive strategy and economic development. His groundbreaking work on the Five Forces framework and the concept of value chain has transformed the field of business strategy. He continues to influence academics, business leaders, and policymakers around the world. Here are 65 of his quotes:

Strategy is about making choices, trade-offs; it's about deliberately choosing to be different.

Michael E. Porter

The essence of strategy is that you must set limits on what you're trying to accomplish.

Michael E. Porter

The essence of strategy is choosing what not to do.

Michael E. Porter

Good leaders need a positive agenda, not just an agenda of dealing with crisis.

Michael E. Porter

The thing is, continuity of strategic direction and continuous improvement in how you do things are absolutely consistent with each other. In fact, they're mutually reinforcing.

Michael E. Porter

If all you're trying to do is essentially the same thing as your rivals, then it's unlikely that you'll be very successful.

Michael E. Porter

If your goal is anything but profitability - if it's to be big, or to grow fast, or to become a technology leader - you'll hit problems.

Michael E. Porter

The company without a strategy is willing to try anything.

Michael E. Porter

A strategy delineates a territory in which a company seeks to be unique.

Michael E. Porter

There's a fundamental distinction between strategy and operational effectiveness.

Michael E. Porter

Change brings opportunities. On the other hand, change can be confusing.

Michael E. Porter

Innovation is the central issue in economic prosperity.

Michael E. Porter

The underlying principles of strategy are enduring, regardless of technology or the pace of change.

Michael E. Porter

Finally, strategy must have continuity. It can't be constantly reinvented.

Michael E. Porter

The ability to change constantly and effectively is made easier by high-level continuity.

Michael E. Porter

The chief strategist of an organization has to be the leader - the CEO.

Michael E. Porter

Billions are wasted on ineffective philanthropy. Philanthropy is decades behind business in applying rigorous thinking to the use of money.

Michael E. Porter

In a period of economic downturn, the overwhelming instinct is to pare back, cut costs, and lay off. If you do that, do so with your strategy in mind. The worst mistake is to cut across the board. Instead, reconnect and recommit to a clear strategy that will distinguish yourself from others.

Michael E. Porter

Early entry is appropriate when the following general circumstances hold: - Image and reputation of the firm are important to the buyer, and the firm can develop an enhanced reputation by being a pioneer. - Early entry can initiate the learning process in a business in which the learning curve is important, experience is difficult to imitate, and it will not be nullified by successive technological generations. - Customer loyalty will be great, so that benefits will accrue to the firm that sells to the customer first. - Absolute cost advantages can be gained by early commitment to supplies of raw materials, distribution channels, and so on.

Michael E. Porter

Low cost relative to competitors becomes the theme running through the entire strategy, though quality, service and other areas cannot be ignored.

Michael E. Porter

Ultimately, health care fails the most basic test. It's not organized around the needs of the patient.

Michael E. Porter

Health care historically has been a very siloed field that's organized around medical specialties - urology, cardiac surgery, and so forth - and around the supply of these specialty services. The patient is the ping-pong ball that moves from service to service.

Michael E. Porter