There Are Still Only 2 Ways To Compete

Context

In 1960s, BCG asserted that there was only one way to successfully compete: gain relative market share. This would result in lower costs than the competitors.

In 1980s, Michael Porter pointed out that there is another way to compete: differentiation.

But, do these 2 ways of competing still hold true today? Does strategy today need to be different? After all, so much changed since 1980s (e.g. new business models, rise of ecosystems, etc.)!

Key Insight

New business models change only the way business is done. Not the way businesses compete!

HBR.org

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