Week 6 Reading Reflection

During my reading, I came upon the topic "Threat of entry". What surprised me , was learning that new entrants to an industry bring the desire to gain market share which then puts pressure on the business's price , cost, etc. Reading this also brought a question to mind? How does a company diversify itself from other companies when there is so much innovation going on as well as how do they predict on whether or not they will out rank their competitors. Upon reading " The power of suppliers, the question on how does the supplier him/herself gain the most out of the value and price of the product compared to the business whose actually selling it to the public dawned on me. Normally I would think whoever bought the product from the supplier would then sell it for even more money unless of course, the company crashes. Although this is a question I'm asking, it is also a part of the reading that most confused me . During my reflection on the reading, I couldn't think of a topic that I disagreed on with the author.