Learning journal

In Weeks 7 and 8, we discussed two topics related to Efficiency. We first explored whether the stock market is efficient because everything that is known about a stock is already baked into the price. We then argued that the companies most likely to win in highly competitive environments are those which are more efficient in driving profitability – something that is particularly true when operating highly capital-intensive businesses.

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Find a Wall Street Journal article about a company that was able to exploit an inefficiency in the market to take the lead over its competitors. You are looking for examples in which economies of scale, speed, cash flow or other economic or operational factors were leveraged to increase profitability. Describe what the company did, and also argue whether the gains they made created a sustainable competitive advantage or just a temporary bump that is vulnerable to replication from other competitors.