1.) What surprised me the most in the reading was the Airlines were less profitable than Knitting Mills from 1992-2006, with Airlines averaging 5.9% ROIC and Mills 10.5%.
2.) One part of the reading that confused me was the shaping industry structure part. The idea of an industry reshaping itself was not sticking with me.
3.) One question I would ask the author is what he thinks the biggest barrier to entry is for incumbents. He listed 7 but surely there is one that more hindering than the other. Also, I would ask how big of a threat are substitutes. There are five forces that shape industry competition, so much do substitutes effect that.
4.) The thing that I disagree on with the author is on Rivalry. He says that rivalry is especially destructive to profitability if it gravitates solely to price because price competition transfers profits directly from an industry to its customers. I think in the long term rivalry can be beneficial to profitability as it fuels competition to make the better and more affordable products. Rivalry can set which company is the best.
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