Sunday, February 14, 2016

Reading Reflection (Week 6)

What was the biggest surprise for me was that the reading implied that barriers to entry could be a good thing; "Entry barriers are advantages that incumbents have relative to new entrants" (p 81).
One part of the reading that was confusing to me "Supply-side economies of scale" because how can scale economies be found in almost ever activity in the value chain; what is the value chain?
If I could ask two questions to the author, they would be: When can substitutes have a positive affect, instead of a threat? When there is rivalry amongst competitors, what's the hardest form to compete in? 
I disagreed with the fact that the government isn't technically a sixth force just because government involvement is neither good or bad for industry profitability. 

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