Skills and competencies of even the best-run companies are available to competitors talent, systems etc. Strategy is concerned with structural barriers to entry. There are only 3 kinds of genuine competitive advantages. The strongest competitive advantages arise from the interaction of one or more of the competitive advantages listed below in order of weakest to strongest. Supply: strictly cost advantages In industries with complicated processes, learning and experience are a major source of cost reduction if a company is tinkering with a product years after first producing it, although it may look ungainly, it also signals how hard it is to conquer that market quickly. Product differentiation is over-rated.
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Start your review of Competition Demystified: A Radically Simplified Approach to Business Strategy Write a review Shelves: business My perspective on business has never been management, but rather investment. Still, this book had been recommended by several respected investors, so I decided to give it a try. I was not disappointed! The title aptly describes what this book is about: formulating a business strategy, based on the presence or absence of competitive advantages barriers of entry into an industry - "moat" in the words of Warren Buffett.
One thing that struck me from the beginning is that the book is written in a very straightforward way - no mumbo jumbo, no buzzwords, no pretentiousness. Each chapter is divided into one part theory followed by one relevant case study. Each case study covers pages, enough to drive home the points, but not so much as to make you get lost or forget. This structure makes understanding much easier, and it helps you remember and will also train your ability to apply the concepts in practice.
You can easily read one chapter at a time and then put the book away for a while, if you have to, without losing track. The book is very well written and easy to grasp. Despite no background in business, I was able to follow everything. Each theoretical concept, no matter how short, is accompanied by loads of examples. Each study is provided with ample explanations of background and industry structure, so you will be able to follow, no matter when or where you grew up.
Well worth reading for investors, as well as managers.
Book Summary: Competition Demystified
Competition Demystified: A Radically Simplified Approach to Business Strategy