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No. of Recommendations: 5
I just finished reading GG god Geoffrey Moore's latest book, Living on the Fault Line: Managing for Shareholder Value in the Age of the Internet. To my surprise, I don't recall seeing any discussion of this book here. Did I miss it?

Although this book is aimed primarily at executives, like The Gorilla Game, it certainly provides tremendous understanding for those investing in business market. I don't say this about many books, but I found this one to be brilliant--a superb piece of practical business theory. His clarity and precision in classifying value chains, business models, stages in development, and business culture appealed to my philososophically trained mind.

Moore's book is really the answer to Christensen's The Innovator's Dilemma. The Dilemma presented the problem of discontinuous innovations as a practically insoluble problem for existing companies. Moore's book offers an effective solution.

If it hasn't already been discussed and anyone's interested, I can write up a more informative review.

Max
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Hello Max,

I think it has been mentioned a couple of times but not very often, or in much depth (but I do not read ALL the posts here!)...

Please do make your review, your description of the book already has me interested in getting a copy.

It sounds as if you have read the Gorilla Game as well...how would you compare and contrast the books, and their respective usefulness to individual investors?

Thanks,

Dreamer
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I would be interested in a write-up on the Fault line I have the tapes. I'll listen to them Max.
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It sounds as if you have read the Gorilla Game as well...how would you compare and contrast the books, and their respective usefulness to individual investors?

Dreamer: Thanks for the feedback. I'll try to make the time to write an informative reviewof the book. Doing so will also benefit me by reinforcing what I learned.

As to comparing it to The Gorilla Game, I would say that if someone reads only one of the books, then GG (2nd edition) is the one to read. It's clearly aimed at investors, whereas Living on the Fault Line is aimed at executives threatened by discontinuous innovations. Still, Fault Line builds on the ideas that Moore has developed in his earlier works. In my view, it's a masterful synthesis of his ideas and will help anyone get a sound grasp on New Economy business models. Anyone who keeps going on about the "insane" stock prices of these companies should read this book.

So, while Living on the Fault line is directed towards executives, I strongly recommend it (yes, a Strong Buy--Focus List!) for this book, because it will help investors know how to think about New Economy businesses.

Max
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I think Chapter two and three in "Living on the Fault Line" are the best chapters for investors.

In Chapter 2, Shareholder Value, Moore gives a great and detailed explanation of competitive advantage period (CAP) and competitve advantage gap (GAP).

Chapter 3 Moore goes into detail on competitive advantage. He discusses each piece of the competitve advantage Hierarchy and the impact on GAP and CAP: Technology Wave, Value-Chain Domination, Market Segment Leadership, Company Execution-Value Discipline, and Differentiated-Offerings.

The "Gorilla Game" is a great overview of how to invest in tech stocks. I still believe it should be read first. Next, one should read "The Innovator's Dilemma" to focus on the concept of discontinuous innovation. Finally, "Living on the Fault Line" provides a framework for valuing competitive advantage.

Ron
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Max,

If it hasn't already been discussed and anyone's interested, I can write up a more informative review.


I am VERY interested in having you do that!

I have read Moore's GG, "Inside the Tornado" and almost finished "Living on the Fault Line".

These books are vectored to the Investor, Company, and CEO respectively. Nevertheless, as an investor I find they get better and better as they progress in further and further detail about Moore's comprehension of today's high tech businesses.

In discussing Living on the Fault Line, I feel that we should discuss each chapter separately, in some detail -- not skipping over any!

These chapters are:

1 The Age of the Internet

2 Shareholder Value

3 Competive Advantage

4 Living on the Fault Line

5 Triage

6 Building to Last

As we go along I plan to make applications to present companies that I see doing exactly what Moore is outlining principle for achieving success. My hope is that others will do likewise.

Phil
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A thought on Fault Line from SI G&K...

http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=13999879

tekboy@inefficient.com
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