Chapter 6. Is this a good industry to be in?
Competitive position and the competencies that underpin it are one thing – the attractiveness of an industry is something different again. One determines whether you win the race, the other how much the race is worth. There have been long and boring disputes about the relative importance of the two factors, but we need not bother with these. At the extreme, a business where no-one makes money and never will is of no interest, and a leadership position here is worthless; and there are some businesses (but very few) where almost everyone makes very high returns, regardless of competitive position. My own experience, for what it is worth, is that industry attractiveness on average explains about 30 per ...
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