Hi Bob, Suutari's book takes an approach of shifting the basis of the investment decision from financial analysis and macroeconomic forecasting to a business strategy and managerial economics approach. He describes his methods by which industries and companies can be analyzed by a combination of industry characteristics and competitive advantage. He goes through the analysis of corporate strategy and uses the Porter model of Industry structure: Barriers to entry, threat of substitution, bargaining power of customers, bargaining power of suppliers, and Internal rivalry. He covers the growth phases, barriers to exit, indusrty cycles, sources, strategies, and constraints of competitive advantage, types of industry change, and how to assess th echange. The chapter on change is excellent, as is the chapter on "the investment decision" and the chapter on "monitoring the investment." The second half of the book goes through analysis of several industries with respect to Part one of the book. I've read the first part of the book twice, and have selectively read the industry analysis sections. My main way of judging the value of a book (i.e whether it's worthwhile) is whether I refer to it again after reading or skimming it once, and I've referred to this on many occasions, especially the 3 chapters mentioned above. A worthwhile purchase in my opinion.
dh |
