The book COMPETITIVE ADVANTAGE introduces a new approach to understanding what makes a business. Porter's revolutionary concept of the value chain breaks down a company into "activities," which are the distinct functions or processes that represent the fundamental "building blocks" of competitive advantage. Now, as a core element of international business thinking, COMPETITIVE ADVANTAGE shifts strategy from a broad perspective to an internally consistent configuration of activities. Its robust framework provides the tools for understanding the cost drivers and relative cost position of a company. Porter's value chain enables managers to isolate the underlying sources of buyer value that will achieve a premium price, as well as the reasons why one product or service substitutes another. It demonstrates that competitive advantage lies not just in the activities themselves, but in the way activities relate to one another, as well as to the activities of suppliers and customers. The widespread use of the phrases "competitive advantage" and "sustainable competitive advantage" is testament to the power of Porter's ideas. COMPETITIVE ADVANTAGE has guided countless companies, business students, and researchers in understanding the roots of competition. Porter's work captures the remarkable complexity of competition in a way that makes strategy both concrete and actionable.