If you read what Peter Drucker had to say about competition back in the late ’50s and early ‘60s, he really only talked about one thing: competition on price. He was hardly alone — that was evidently how most economists thought about competition, too.
It was this received opinion Michael Porter was questioning when, in 1979, he mapped out four additional competitive forces in “How Competitive Forces Shape Strategy.” “Price competition can’t be all there is to it,” he explained to me, when during the course of updating that seminal piece in 2008, I asked him about the origins of the five forces model.
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