Porter, 2008 - Analysing the Industry - Common Pitfalls
3 important questions on Porter, 2008 - Analysing the Industry - Common Pitfalls
What is the common pitfall strategists face when analysing the industry?
When structural traits of an industry are mistaken for forces.
What are the 2 common pitfalls that are discussed in the lecture?
- Industry growth rate: assuming that fast-growing industries are always attractive.
- Technology and innovation: advanced technology or innovations are not by themselves enough to make an industry structurally attractive (or unattractive).
What truly takes place in the market when looking at the growth rate and technological innovation?
- Growth rate - increases supplier power, may draw entrants, powerful consumers
- Technological innovation - mundane industries with price insensitive buyers etc are often more attractive
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