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Why Profit Pools are fundamental to understanding the 101s of any industry?

I built my career on fundamentals that my father and mother overly emphasized were always critical.  Get the 101s right and the rest is simple. What comes and goes is the fashion and what remains is always the fundamentals.

Ever since I can remember I learnt the fundamentals of supplychain, inventory management, etc. from my father and this was when he made me read his books which I never understood as i was less than 5 or so. But over time they become the single point of my interdisciplinary approach applied to any industry from Aerospace & Defense, tech, internet, mobile or renewables.

I have built a framework over two decades on how to map an industry so that I could take a decision based on the 101s.

Profit Pools by Orit Gadiesh and James Gilbert of Bain in a HBR article in 1998.  Profit Pools are really fundamental to understanding any industry whether you are an investor, entrepreneur, CXO, board member, academic or just someone interested in undedstanding the fundamentals and gather the signals from all the noise!

How to map your industry’s profit pool

  • May 01, 1998 Harvard Business Review

By Orit Gadiesh and James L. Gilbert

Profit-pool mapping reveals the location and size of profit concentrations within an industry and sheds light on how those concentrations might shift. In this video, article co-author Orit Gadiesh discusses the importance of understanding profit sources.

http://www.bain.com/publications/articles/how-to-map-your-industrys-profit-pool.aspx

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