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Competition Demystified: A Radically Simplified Approach to Business Strategy
Competition Demystified: A Radically Simplified Approach to Business Strategy
Date: 22 April 2011, 11:15

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A conscious simplification of Michael Porter's classic Competitive Strategy, this book treats only one of Porter's five forces, "potential entrants." According to the authors (Value Investing), avoiding competition is the only way to escape "a level playing field in which anyone can join... [and] only the best... survive and prosper." Most of the book discusses ways to gain protected positions from which businesses can be run badly but still earn abnormal returns. Cutting prices, matching prices and using domination of one market to create a monopoly in another are all discussed; legality is mentioned only briefly and indirectly. The best of their recommendations is to find small, declining, local markets without existing competitors. Despite the title, the book seems aimed more at investors than managers. Stockholders appreciate the value of mediocre companies that generate steady, unexciting profits in local markets without much notice; they like them because the stock is cheap. Managers usually aspire to build something better, in order to make the stock expensive. Still, this book is a useful counterpoint to the idea that conflict and growth are good for their own sakes. (Aug. 18)
Copyright © Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Review
Competition Demystified is superb, with a deft balance between theory and case studies that offer fascinating explanations of strategic adventures... -- The Globe and Mail
the best of the strategy books now or soon to be in the stores... direct, non-academic... occasionally funny -- New York Times

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