Issue No 154 November 2005
Book Review
Competition demystified: a radically simplified approach to business strategy by Bruce Greenwald and Judd Kahn
Competition is a concept that every business is trying to understand and come to terms with. Strategy is a design for the future that goes beyond straightforward planning. These are two of the keys to long-term success and here is a book that deals well with a difficult subject about which no business person can afford to be complacent.
While Porter’s Competitive strategy, published in 1980, is still regarded as the standard text in this area, Greenwald and Kahn make a strong challenge to that position. The convoluted formulae for determining competitive advantage which was established by Porter and is taught in business schools worldwide may produce results, but the sheer complexity of it can prove daunting.
Clarity is the watchword of Competition demystified. The authors have taken a subject that can become very involved and disposed of all the unnecessary complications while bringing it up-to-date. However, that does not make it a simple subject or the book itself an easy read.
The contention of the authors is that there is an easier way to view competition. They identify three sustainable competitive advantages and insist that barriers to entry must be given overriding importance. These arguments, accompanied by their analyses of some high-profile companies (including Kodak, Polaroid, Coca Cola, Microsoft, Apple, and Sotheby’s), convincingly lay out a manageable way for business to address the issue of competitive strategy in today’s marketplace.
This is a subject that has to be addressed by every business, no matter its size. A good understanding of the different aspects of competition is essential. Strategising to focus on the right aspect can make all the difference between success and failure, sometimes of a product expansion, sometimes of an entire company or even of a multinational.
Competition demystified has been designed to make all of this easier on whichever scale you are working. It is a valuable work that should be read by anyone involved in determining a business strategy.
Kate Ogden
Business and Computing Centre
