Monday, May 21, 2007

Competition Demystified - Book Review

Competition Demystified: A Radically Simplified Approach to Business Strategy

What Is It About?

The book devotes itself to understanding and explaining how to analyze the competitive advantage a business may or may not posses. The book simplifies the analysis, arguing that a competitive advantage analysis simply determines whether there exits barriers of entry that protect the incumbent firm.

What Did I Get Out Of It As A New Investor?

A straight forward book which explains competitive advantage in a manner easy for the new investor to understand. Using discussion and case study, the authors explains how an investor should determine whether a competitive advantage exists in the firm under review. The best part of the book is a simple decision tree that repeats throughout the book, showing how too quickly asses any competitive advantage that may exist. One of the better books I have read that added to my development as a new investor.

The Good News

Understandable without sacrificing depth, this book does a great job demonstrating to a new investor the required analysis for finding competitive advantages.

The Bad News

Written by a college professor the book reads as a textbook. The reader would be better off digesting the material over several weeks to allow for consideration of each chapter.

The Bottom Line

Great book for those looking to gain knowledge on the subject of competitive advantage.

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Excellent book

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