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THOMAS STEWART: I am Tom Stewart, Editor and Managing Director of the Harvard Business Review. Our guest today is Michael Porter, Professor at Harvard University and Head of the Institute for Strategy and Competitiveness. He is the author of the forthcoming HBR article, The Five Competitive Forces That Shape Strategy. A reaffirmation, update, and extension of his groundbreaking 1979 article How Competitive Forces Shape Strategy. Mike, thanks for joining the program. To start, let us remind our viewers of what the five competitive forces are. MICHAEL PORTER: Well Tom, the basic idea of the competitive forces starts with the notion that competition is often looked at too narrowly by managers, and the five forces say that, yes you are competing with your direct competitors, but you are also in a fight for profits with a broader extended set of competitors, customers who have bargaining powers, suppliers who can have bargaining power, new entrants who might come in and kind of g