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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