Quotes from Michael E. Porter

I think historically where we [venture capitalists] fail is when we back technology. Where we succeed is when we back new business models.

Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. It means performing different activities from rivals, or performing similar activities in different ways.

Cash Cows: Businesses with high relative share in low-growth markets will produce healthy cash flow, which can be used to fund other, developing businesses.

From my examination of many declining industries, the firms that seem to be the most objective about managing the decline process are those that also participate in the substitute industry. They have a clearer perception concerning the prospects of the substitute product and the threat of decline.

It is the "threat of entry", not whether "entry" actually occurs, that holds down profitability. p.26

Rivalry is especially destructive to profitability if it gravitates solely to price because price competition transfers profits directly from an industry to its customers. P.32

Competition on value must revolve around results. The results that matter are patient outcomes per unit of cost at the medical condition level.

Competing on results requires that results be measured and made widely available. Only by measuring and holding every system participant accountable for results will the performance of the health care system ever be significantly improved.

A strategy is an internally consistent configuration of activities that distinguishes a firm from its rivals.

We usually think of suppliers as other firms, but labor must be recognized as a supplier as well, and one that exerts great power in many industries. There is substantial empirical evidence that scarce, highly skilled employees and/or tightly unionized labor can bargain away a significant fraction of potential profits in an industry.

Mandatory measurement and reporting of results is perhaps the single most important step in reforming the health care system.

In essence, the job of the strategist is to understand and cope with competition. P. 25