Week 6: Reading Reflection (The Five Forces that Shape Competitive Strategy)

1). The biggest surprise for me was the realization that a fast growing industry is not always a profitable one. As Porter points out, it is important to note the differences between growth and profitability, and it was something that I had never really separated the two qualities. Understanding these factors then become part of strategy to use as a toll to improve performance.

2). Nothing in particular was confusing, but I think the most challenging concept is trying to consider substitutes because it can vary from person to person and it is outside of the company’s control. Although they meet the same basic need, they aren’t always obvious rivals, so it can be difficult to anticipate.

3). My first question would be where a new business should begin when trying to incorporate the five strategies? It is obviously more complex and challenging, otherwise everyone would be successful, so how would someone who is new to the market begin utilizing these strategies. My second question would be which of the five, if any, would he consider to be the most important? Often it is hard to please everyone or compete at the highest level in each of the categories, so is there one area in particular that a business should focus on?

4). There was nothing that I disagreed with. I thought the author did a good job backing up his theories and explanations. Each of the five forces is closely linked, and it is apparent that he did extensive research on the subject.