Why is the Happy Meal such a popular product? Why do elite brands rise to thei top of their markets? How does iPhone excel in meeting customer demand? Why do companies focus on value added initiatives? Why is proper pricing a critical but under-emphasized exercise? The answers to these questions are tied to a concept found in economics called consumer surplus.

Sensing disruptive innovation in the marketplace is critical to the strategy of any business. Disruptive innovation is the result of either a new technology or the mixing of previously unrelated technologies that create a shift in demand, generally in a movement away from the existing product or service.

In the original format, Porter originally laid out three generic strategies that a business could pursue. Over time, those strategies have been enhanced and refined. It is his original work and subsequent enhancements that offer an excellent approach to how business owners can look at their competitors in a market, and also glean tactics from players in other markets to carry out their own strategy.