The Five Competitive Forces That Shape Strategy - Week 6 Reading Reflection

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?

After reading this article, I was surprised by understanding many aspects that drive competition within an industry, but what amazed me the most was understanding the Five different forces that Shape Industry Competition in any type of industry. I thought that companies in different markets and industries would have to focus on completely different aspects, but after reading this article, I realized that most companies coming or being part of completely different industries are similar in a certain way. I believe that it is essential for an entrepreneur to understand the different types of threats and opportunities in a given industry, because with that knowledge, the entrepreneur would be able to realize if his or her unmet opportunity would be successful in a given industry. This article is without any doubt an essential tool for entrepreneurs to understand how competitive forces are influencing companies’ behaviors in any type of industry.

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

One part that was a little bit confusing for me was when the author mentioned the seven major sources of barriers to entry. I tried to understand the difference between these aspects but I had to read this part three times two have a clear image of what the author was trying to explain.

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

If I were able to ask the author any question I would ask the following:

•       Is this model accurate in all types of industries? Or is there any point or aspect in which some industries would reveal something different?
•       What do you consider is the most important and significant aspect of the article that an entrepreneur should always have in mind before setting his or her path as an entrepreneur?

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

Given the fact that the Michael Porter is a well-known professor due to all the years of experience, and the different research projects he worked on for the benefit of the Business and Economy students all around the world, it is hard for me to find any aspect that was not described in the right way in this article. However, I would recommend him to describe a little bit more the influence of Government decisions and how they impact the different industries and competition. I thought that the Government played an essential role when talking about competition due to all the regulations that government policies that affect any industry in a positive or negative way, but Professor Porter states that: “ Government involvement is neither inherently good nor bad for industry profitability.”