Sunday, February 14, 2016

Week 6 Reading Reflection

I was very surprised with one fact being that it's not about who's the biggest company, but rather the most profitable. I don't know if that fact was necessarily surprising or educational, as I had previously thought that whichever company was the biggest was the most profitable.
I was most confused about substitutes and how these can come from other industries. Though I could see how this could by rare and infrequent chance occur, I don't understand how this can be a real enough possibility to have been mentioned in the reading. I know some inventions have sometimes been made for one original purpose, and later discovered to work better for another purpose, however I don't understand how often this could really happen.
I would ask him if there were any "subcategories" to these five forces, as well as how learning these five competitive forces we can use this knowledge to our advantage? By understanding that we should focus or time and energy on all of these categories, and learning, or becoming experts, in all these categories, how can we use this knowledge to become more innovative and unique?
There was really nothing I could disagree with, especially as Professor Porter is an economic expert, and I am not. I really enjoyed his layout of the five forces for strategy and thought they were well-thought out and very realistic and understandable. It was rather obvious that once reading his publications and applying his teachings, you could become a successful business owner, not by being the biggest, but the most profitable.

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