The journal by
Michael E. Porter was an interesting. From the beginning, the article was very
straight forward. Mr. Porter spoke on the forces that shape competition, such
as threat of entry, which is new entrants that bring new capacity and a desire
to gain market that puts pressure on prices, costs, and the rate of
investments. The other force is the power of suppliers, bargaining power of
buyers and threats of substitute of products and service. All of this which is
taught in great detail in Macroeconomics.
·
The biggest
surprise in the reading was learning on factors, not forces. In this section I
was able to learn on the “Industry Growth Rate”. Growth tends to mute rivalry.
But it can also put suppliers in a powerful position. Also, how government is
not seen as a sixth force because their involvement is neither good nor bad for
the profitability of the industry.
·
One
that was somewhat confusing was the “Implications for Strategy”. This is how
the company positions into the industry.
·
There
was nothing I disagree with the author. Instead, I found the article very
useful in understanding competition.
·
Two
questions I can ask is:
o
How
can you shape industry structure? In a way that is effective for every company
in different types of industries?
o
Can
you expand competition and value?
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