This document discusses Michael Porter's framework for competitive advantage. It outlines two basic types of competitive advantage: cost leadership and differentiation. It then introduces Porter's value chain model which identifies the primary and supporting activities within a firm that can contribute to cost leadership or differentiation advantages. Finally, it discusses how firms can analyze their value chains, identify key cost drivers, and reconfigure activities to achieve a sustainable cost advantage over competitors.
This document discusses Michael Porter's framework for competitive advantage. It outlines two basic types of competitive advantage: cost leadership and differentiation. It then introduces Po…