Michael Porter, a relatively unknown face at Harvard Business School during 1985, published a book, Competitive Advantage. The book highlighted that companies have to optimize their value chain in order to consistently outperform their rivals. Porter highlighted that the firm can have competitive advantage either by focusing on low cost or the differentiation strategy. The book became an instant success in academics and in industry and that is from where Michael Porter became The Michael Porter. Over the years, the basic building blocks of business model have changed and Porter’s work has been put to question. Rita Gunther McGrath in her book, The End of Competitive Advantage has contended that sustainable competitive advantage in today’s turbulent business environment is no longer possible and has in fact advised firms to seek out transient advantage. Further, many other researchers have criticized Porter’s idea of cost and differentiation as a competitive advantage because first, it is very difficult for a firm to calculate its own and competitors’ cost of operations, second, new products and services are easily imitated. Further, research has shown that value for money has become a preferred strategy for businesses success, and according to Porter it is being stuck in the middle of the road and an absolute guarantee of failure.
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