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Strategy Lenses · Frameworks

Porter's Five Forces

Michael Porter's 1979 framework for industry profitability: rivalry, new entrants, buyer power, supplier power and substitutes, with airlines vs soft drinks, how to use it, generic strategies, and its limits.

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ECON 125 | Lecture 24: Michael Porter - Strategy University of North Carolina at Chapel Hill · 65 min
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Key idea
Prereqs: Moats & competitive advantage. Next: Disruption: The Innovator's Dilemma; Capital allocation like Buffett. Sources: Michael Porter, 'How Competitive Forces Shape Strategy' (HBR, 1979) and 'The Five Competitive Forces That Shape Strategy' (HBR, 2008); *Competitive Strategy* (1980).
Next: 1. The forces
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