Week 6 Reading Reflection

Week 6 Reading Reflection

I was very surprised when Porter stated that a fast growing market is not always a profitable one. For me, it seems obvious that firms who are growing quickly are building profits and making money. However, according to the author, it seems that not all fast growing markets are going to be profitable.

I disagree with the author on this point. I personally feel that if a firm is continually growing, it is going to have business and make money. I guess the only way a firm could be growing and not making a profit would be if the company was spending more money than it was making. Firms that are growing and expanding generally have to be making some kind of profit, even if it isn’t a huge profit. If I could ask Porter a question, I would ask him, “What inspired you to write this article in your first years as an associate professor?” I would want to know if he had a drive and passion for it or he was trying to impress someone with his knowledge. I would also ask him how he decided to get into such an interesting field of study and eventually teach others. I found it confusing when Porter spoke on the five forces that reveal what profitability really is. I wish that Porter had gone into more detail on how to implement to five forces into real life business. It would very interesting to get the opportunity to read a follow up article.

Megan