There’s money to be made in declining markets – especially if you can exploit rivals who don’t understand what you do. So model out how you can play the competition as times get tough. We all love growth markets, right? Ever-growing customer numbers, rising sales and revenues – what’s not…

See Teaching Economics after the Crisis.  J-C Trichet: ECB President “As a policy-maker, I felt abandoned by conventional tools.” (2010). This may be mostly about macro-economics, but reflects fundamental inadequacies in the underlying science that afflict micro-economics and have poisoned fundamental ideas in strategy. Even the most basic tools, such as the PQ demand-curve, are hopelessly unrealistic depictions of…

This LinkedIn exchange asks why so many new entrants start up in growth industries when it’s obvious that most will fail. Another big case : during 2000-09 Europe added about 12 low-fare airlines – maybe 20 started and 8 failed? No – 60 started and 48 failed! But I guess the industry…

I see (www.cotlook.com) cotton prices have hit a 2½ year high on fears that the Pakistan floods will cut supply – the country produces nearly 7% of world supply. The dynamics of this are pretty easy to lay out, just like many other cyclical industries:

Good to be starting a collaboration on this for the textbook 2nd edition with Alexander Zock at European Center for Aviation Development, who is trying to get better understanding of the dynamics of this turbulent industry – from airlines back to airports and aircraft production. [BTW – by industry dynamics we…