When time allows, I’ve been reading “Understanding Michael Porter: The Essential Guide to Competition and Strategy” by Joan Magretta. At Chapel Hill, we were exposed to Porter, but things were simpler in the 80s and competitive strategy wasn’t as tumultuous as it is now.
In one sentence, Porter believes everyone in an industry should have some unique strength, thus mitigating competitive pressures. He teaches that when an industry is dominated by the race to be lowest prices and highest quality everyone loses (except of course the customer!).
Working with clients I’ve observed how almost every one of them touts high quality and low prices, flying in the face of Porter’s advice. I’m now working with clients to find and implement, if necessary, unique strengths and marketing those strengths.
Keep your fingers crossed that it makes them rich.