Reading Reflection – Week#6

1)    What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations? 

·         Not having the expertise of a start-up venture, I didn’t really have any expectations that were different than my reading. However, what I learned was that industry structure is what drives competition and profitability, not whether the industry produces a product or service, is emerging or mature, high tech or low tech, regulated or unregulated. Moreover, it is industry structure manifested in the competitive forces that sets the profitability. I had to digest this concept as I would not have been able to look that far down the road to understand this concept. I do feel it important to understand this before venturing out into a business. In fact, this article calls it a “healthy” industry structure and that it should be as much of a concern as the companies own position in the marketplace.

2)    Identify at least one part of the reading that was confusing to you.

·         I think what is confusing is just how one would be how to determine the most salient force, as this article says it is not always obvious. The reading per se wasn’t confusing, but the concept on how one would attack the issues can certainly be mind-boggling.

3)    If you were able to ask two questions to the author, what would you ask? Why?

·         I would ask the author how a small company can leverage themselves against the economies of scale that protect larger companies. I ask because a small mom and pop grocer could not compete with Wal-mart who is known to buy at reduced costs based on volume.

·         How would a small company deal with the power of buyers? We know, or we have all engaged in, shopping around only to come home and buy it cheaper online. How does one know when to focus on cost, and when to focus on value?

4)    Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

·         I would not have enough knowledge to suggest the author of a Harvard Business review article was wrong. However, I would say that seeing as this is such a vital part of success, the author may have listed other reference books or reading suggestions on where to find real-life help in the particular industry for which we might have questions.