The World's Best Book Summaries
What is Michael Porter’s value chain analysis, and what does it mean for your business? Michael Porter’s value chain analysis can help you understand how a company actually works based on the activities it performs in a specific sequence.
Michael Porter’s airline industry analysis uses the Five Forces model to dig into major airlines and why they’re so consistently unprofitable. Even though they have billions of dollars in revenues, they’re chronically bad businesses. Porter’s five forces analysis helps you understand why.
What is ROIC in finance? What does it mean, and how do you use eit? ROIC in finance refers to the return on invested capital. Michael Porter argues that ROIC in finance is the most important metric for measuring a business success, and outlines how the Five Forces can help you analyze businesses.
Is buying a house a good investment? Why or why not? Though the traditional answer to the question “is buying a house a good investment” is yes, Robert Kiyosaki argues that it’s not. Not only is buying a house a good investment not the right answer, but a house can also be a liability instead of an asset. Learn more about the question “is buying a house a good investment” and why you should think about other investment opportunities.
What are strategic trade-offs in business? What kind of strategic trade-offs do you have to make? According to Michael Porter, strategic trade-offs force you to focus your business’s strategy by making certain things incompatible. In sum, you can have it one way or the other, but not both. Learn what this means in business.
What is the five forces model? How can you use the five forces to conduct business analysis? The five forces model is a model used in Understanding Michael Porter to break down why some businesses are profitable. The five forces model uses several key components of a business’s operations and its position within the industry.
What Rich Dad, Poor Dad‘s cash flow chart, and what can it teach you about managing and making money? The Rich Dad, Poor Dad, cash flow chart addresses an important basic principle of finance: having consistent cash flow helps make you rich. You can look to the Rich Dad, Poor Dad cash flow chart to understand how money generates money.
What does it mean to pay yourself first? How can paying yourself help you build wealth? The definition of “pay yourself first” means to invest in assets and other strategies that can help generate wealth, BEFORE paying your bills. The idea of “pay yourself first” will help create more wealth in the long and short term.
Scope creep is the tendency for companies to extend their product to do more than it really should. Managing scope creep is vital for building an enduring, successful business strategy. By effectively managing scope creep, you can help your business grow without risking loss of identity or your business plan.
What is the threat of new entrants? What does it mean for your business? The threat of new entrants is the possibility of new, direct competitors to your business. As one of the five forces, the threat of new entrants is a critical concern for many businesses, especially in fast-changing industries.