Posts tagged Disruptive innovation
The death of competition

A big shock in the world of consulting a couple of weeks ago was when Monitor Group filed for bankruptcy in the USA. Monitor was the multi-million dollar strategy consultancy started by Michael Porter in the 1980’s based on his famous 5 Forces model. The premise of Porter’s model is excess profits can be found by focusing in industries and companies whose barrier to entry or barrier to competition is high. Monitor’s consulting revenues streamed in from doing the data and financial analysis for companies to show them how and where to maintain this competitive advantage. Safe and highly profitable havens of industry were identified for those companies who could afford Monitor’s fees. This was a way of analysing markets to keep structural barriers high and make more money than, potentially, the merits of a company’s products or services deserved.

Read More