Friday, February 12, 2016

Week 6 reading reflection


1. Something that was a big surprise to me was the section about substitute products. You never really think about how much substitute products can limit the cost you can charge for certain goods. When I think of this, I think of generic brands that limit the cost that name brands can charge. When you compare two cereals and they both have the same exact ingredients but one is twice as much, it can cause increased competition.

2. Something that was slightly confusing to me was the chart that showed the forces governing competition in an industry. I just didn’t like how it was laid out, and the three circles surrounding the industry, are those supposed to be like barriers to breaking through?

3. The first question would be about the 3 circles in his chart I explained above. I would also ask about the experience curve as an entry barrier for further elaboration.

4. Honestly there was nothing I could argue with in this article. Michael Porter is an extremely smart Harvard professor and I can agree, or atleast see the logic that he presents in this article

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