Week 6 Reading Reflection

I found surprising the statement that threat of entry can hold down profitability, not the entry itself. I did not realize if the threat alone of barriers of entry are high, industry profitability can be lower than expected. I always thought entering the market could threaten profits of an industry because who cares if there is a threat if in fact, nothing comes from it.

Most of the article was easy to understand. I think the only part that I needed a better understanding is how a strategist is supposed to focus on the forces and not what Porter states are just factors with regards to industry structure.

One of my questions would be, if strategist focuses only on forces, is it his contention the factors do not matter because we would have overcome the obstacle in other efforts?

I wonder what those industries in which threat of entry is low, what is it they focus on in order to remain relevant for buyers and consumers?

I disagree with eliminating rivals is risky. Yes competition is healthy, but you don't want the market saturated with competition, therefore, if businesses review and find there is a way to gain advantage by mergers or consolidation, then they should move forward. There just needs to be a strong plan in place to ensure the consolidation is successful to the companies involved, but mostly the consumer.