February 14, 2016

Week 6 Reading Reflection

     In “Michael Porter: The Five Forces that Shape Competitive Strategy”, I was surprised to learn that “the five forces reveal why industry profitability is what it is” and what the five forces where. After I read the reading I realized that this makes a lot of sense, I remembering learning about some of the forces when I took basic economic classes a couple of years ago but I never applied them in the way that Porter does in the reading.
     I didn’t find any particular part to be confusing. This reading used basic economic concepts that I have already learned and just built onto them while also using examples to illustrate the concept with real life, relatable examples, like the music industry.
     I would be interested in knowing which barrier to entry is most powerful at keeping people out of the market. I noticed that Porter mentioned the importance of several of the barriers but I don’t recall him stated which is most important. I would think it would be restrictive government policy but I would be interested in knowing what Porter thinks. Something else I would be interest in knowing is what is the best way to gain market share. I think that this is something really important for both established companies and ones just starting out. It would be interesting to know what he suggests for companies just starting out in particular.
     In this reading I didn’t disagree with anything that Porter said, which I think is mostly due to the fact the reading drew upon a lot of basic economic concepts that I have continuously heard for years.

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