Quotes About Industry

This, says Porter, is competitive convergence. Over time, rivals begin to look alike as one difference after another erodes. Customers are left with nothing but price as the basis for their choices. This has happened in airlines, in many categories of consumer electronics, and in personal computers, with the notable exception of Apple, the one major company in that industry that has consistently marched to its own drummer.

In industry after industry, Porter notes that economies of scale are exhausted at a relatively small share of industry sales. There is no systematic evidence that indicates that industry leaders are the most profitable or successful firms.

The five forces framework explains the industry's average prices and costs, and therefore the average industry profitability you are trying to beat.

But this way of thinking about competition is too narrow. The real point of competition is not to beat your rivals. It's not about winning a sale. The point is to earn profits. Competing for profits is more complex. It's a struggle involving multiple players, not just rivals, over who will capture the value an industry creates.

These five forces—the intensity of rivalry among existing competitors, the bargaining power of buyers (the industry's customers), the bargaining power of suppliers, the threat of substitutes, and the threat of new entrants—determine the industry's structure

Second, industry structure determines profitability—not, as many people think, whether the industry is high growth or low, high tech or low, regulated or not, manufacturing or service. Structure trumps these other, more intuitive, categories. Third, industry structure is surprisingly sticky.

The five forces framework zeroes in on the competition you face and gives you the baseline for measuring superior performance. It explains the industry's average prices and costs, and therefore the average industry profitability you are trying to beat. Before you can make sense of your own performance (current and potential), you need insight into the industry's fundamental economics.

Note that if an industry doesn't create much value for its customers, prices will barely cover costs. If the industry creates a lot of value, then structure becomes critical in understanding who gets to capture it. Industries can, and often do, create a lot of value for their customers or suppliers while the companies themselves earn very little for their efforts.

If you have powerful buyers (that is, customers), they will use their clout to force prices down. They may also demand that you put more value into the product or service. In either case, industry profitability will be lower because customers will capture more of the value for themselves.

disruptive technology will invalidate the assets of the current generation of industry leaders. Digital

Entry barriers protect an industry from newcomers who would add new capacity.

Indeed, on a high plane of generality there is nothing very much for economic theory to say to the planner, except: Do not listen to those who say you want this rather than that — agriculture, not industry; exports, not home production; light industry, not heavy. You always want both. [p. 113]

I just want to continue to break barriers and to show the industry and the world that beauty is diverse, and you don't have to be a certain stereotype to be beautiful.

I have several writer friends, but I don't involve them in my work process. I'm more likely to talk about the business of publishing with them.

Lethal heat waves, droughts, and runaway wildfires of unprecedented magnitude, check. The scientists warned us. The corporations with vested interests in the fossil fuel industry and the governments they supported acted just like the tobacco companies. They pretended the science was unsettled and stalled for precious years.

It was the reason neither Florida nor any of her friends could afford health insurance—the industry had nothing to do with providing healthcare; it was designed to extract the maximum amount of money from each person.

these conglomerates, the zaibatsu, were coordinated by finance capital, not production:

keiretsu "enterprise groups."8

Plus, it was made by Zaxy, the company behind Smartifex, Brillicent, and other popular work enhancement drugs.

el Gobierno y la industria no se asignaban a los más trabajadores ni a los más capaces, sino a los más leales.

Las plazas universitarias, los puestos relacionados con los derechos civiles o los cargos de responsabilidad en el Gobierno y la industria no se asignaban a los más trabajadores ni a los más capaces, sino a los más leales.

produced eighteen thousand tanks, almost fifty thousand tank diesel engines, and more than seventeen million units of ammunition.

lectures include a discussion of what has happened to Russian industry over the past twenty-plus years.

The same belief-formation process led hundreds of millions of people to bet the quality and length of their lives on their belief about the merits of a low-fat diet. Led by advice drawn, in part, from research secretly funded by the sugar industry, Americans in one generation cut a quarter of caloric intake from fat, replacing it with carbohydrates.