Chris Bradley

The first big test of strategy is: Does your strategy beat the market? And by that, what we really mean is, did you generate economic profit, which is the evidence that you overcame perfect markets? Because—and perhaps this is a scary flashback to your economics textbooks—in perfect markets there is no economic profit. The residual of market imperfections, or what we call competitive advantages, is economic profit.

Like this content? Why not share it?
Share on FacebookTweet about this on TwitterShare on LinkedInBuffer this pagePin on PinterestShare on Redditshare on TumblrShare on StumbleUpon

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.