According to Porter, even though not all companies that compete in a given industry clearly define their competitive strategy, they certainly have one. The competitive strategy that is formed through analysis of the industry as a whole, and making forecasts about industrial developments in the future, understanding competitors and its own position, and converting this analysis into a well-planned road map and in the end is compiled, so that the company’s own capabilities that will ensure superiority are brought together with the benefits of environmental opportunities. New-Generation Banks
In fact, the concept of competitive strategy in the literature emerged with Porter. Porter placed ‘competition’ as a focus of the strategy idea instead of planning and ‘competitive strategy’ as a focus of strategy instead of strategic planning. This approach caused a definite shift in the idea of strategic management, in the sense that the focus shifted from “strategic planning to competitive strategy”. Porter takes the competition concept as enhanced competition: direct competition (competition coming from existing competitors), indirect competition (competition coming from substitutes) and potential competition (competition pressure created by new investors that may potentially enter the industry). Taking this as the basis, Porter defines competitive strategy as a concept that is shaped according to the strategic position a firm has in the industry.