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Faro's Advantage - What is this?

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By earslookin
June 16, 2005

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OnTheRivet has proposed that the Collective do a project using Michael Porter's concepts of competition within an industry to help understand a company's ROIC.

Coincidentally, on the Hidden Gems discussion board I've been writing a series of posts using Porter as a framework to analyze Faro Technologies (I own shares of Faro.) My approach is to determine Faro's sustainable competitive advantage, and use that to illuminate business drivers, economics, and financials. I started with Faro's industry, am now delving into competitors, and will end with Faro itself. (I'm about 2/3 done.)

TMFKitKat thought it might be helpful to post the series over here. Perhaps the series will be of some use as background to the Porter/EVA project.

Here are the topics posted so far...

1.0 Introduction
2.1 Industry Description
2.2 Industry History
2.3 Industry Product Lines
2.4 Industry Buyers
2.5 Industry Size and Market Share
3.1 Hexagon

Topic 3 will continue with the rest of Faro's competitors, and then topic 4 will conclude the series with a look at Faro itself.

To cobble together the outline for the series, I used Porter's Cases in Competitive Strategy (1983) as well as his Competitive Strategy (1980), Competitive Advantage (1985), and his Harvard Business Review article "What is Strategy?" (1996).

Faro's Advantage - 1.0 Introduction

Faro's Advantage - 2.1 Industry Description

Faro's Advantage - 2.2 Industry History

Faro's Advantage - 2.3 Industry Product Lines

Faro's Advantage - 2.4 Industry Buyers

Faro's Advantage - 2.5 Industry Size/Share

Faro's Advantage - 3.1 Hexagon

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