Strategic Elements of Competitive Advantage. PPT 6 (First ppt slides after the mid-term) Assist. Prof. Dr. Ayşen Akyüz

Size: px
Start display at page:

Download "Strategic Elements of Competitive Advantage. PPT 6 (First ppt slides after the mid-term) Assist. Prof. Dr. Ayşen Akyüz"

Transcription

1 Strategic Elements of Competitive Advantage PPT 6 (First ppt slides after the mid-term) Assist. Prof. Dr. Ayşen Akyüz

2 Industry Analysis: Forces Influencing Competition Industry group of firms that produce products that are close substitutes for each other Michael E. Porter identifies five forces that influence industry competition: the threat of new entrants, the threat of substitute products or services, the bargaining power of buyers, the bargaining power of suppliers, and competitive rivalry.

3 Porter s Force 1: Threat of New Entrants New entrants to an industry bring new capacity, a desire to gain market share and position, and, quite often, new approaches to serving customer needs. The decision to become a new entrant in an industry is often accompanied by a major commitment of resources. New entrants mean reduced profitability Barriers to entry determines the extent of threat of new industry entrants

4 Threat of New Entrants: Barriers to Entry Industry is more attractive to new entrants when: Advantages of economies of scale are absent. Capital requirements to enter the industry are low Cost advantages are not related to company size Buyers are not loyal to existing brands Government does not restrict the entrance of new companies

5 Threat of New Entrants: Barriers to Entry Distribution channels Are there current distribution channels available with capacity? Government policy Are there regulations in place that restrict competitive entry? Cost advantages independent of scale economies Is there access to raw materials, large pool of low-cost labor, favorable locations, and government subsidies? Competitor response How will the market react in anticipation of increased competition within a given market?

6 Porter s Force 2: Threat of Substitute Products Availability of substitute products places limits on the prices market leaders can charge Industry is more attractive when: Quality substitutes are not readily available High prices induce buyers to switch to the substitute

7 Porter s Force 3: Bargaining Power of Buyers Buyers=manufacturers and retailers, not consumers Buyers seek to pay the lowest possible price Buyers influence is high when number of customers is small and cost of switching to a competitor s product is low. Buyers have leverage over suppliers when: They purchase in large quantities (enhances supplier dependence on buyer) Suppliers products are commodities Industry is more attractive when: Customers switching costs are high Number of buyers is large Customers want differentiated products Customers find it difficult to collect information for comparing suppliers

8 Porter s Force 4: Bargaining Power of Suppliers When suppliers have leverage, they can raise prices high enough to affect the profitability of their customers Leverage occurs when Suppliers are large and few in number Supplier s products are critical inputs, are highly differentiated, or carry switching costs Few substitutes exist Suppliers are willing and able to sell product themselves Industry is more attractive when: Many suppliers sell a commodity product Substitutes are available Switching costs are low

9 Porter s Force 5: Rivalry Among Competitors Refers to all actions taken by firms in the industry to improve their positions and gain advantage over each other Price competition Advertising battles Product positioning Differentiation

10 Competitive Advantage Achieved when there is a match between a firm s distinctive competencies and the factors critical for success within its industry Two ways to achieve competitive advantage Low-cost strategy Product differentiation

11 Generic Strategies for Creating Competitive Advantage Cost Leadership low price Product Differentiation premium price Focused Differentiation premium price

12 Cost Leadership Goal: to be the low-cost producer in the industry (or market segment). Low-cost leaders have advantages: Reaching buyers who buy on the basis of price The power to set the industry s price floor. Must construct the most efficient facilities Must obtain the largest market share so that its per unit cost is the lowest in the industry Only works if barriers exist that prevent competitors from achieving the same low costs

13 Product Differentiation When a product has perceived uniqueness, in a broad market, it is said to have achieved competitive advantage by differentiation. Extremely effective for defending market position Extremely effective for obtaining aboveaverage financial returns; unique products command a premium price

14 Focused Differentiation The product not only has actual uniqueness but it also has a very narrow target market Results from a better understanding of customer s wants and desires It might emphasize high quality, extraordinary service, innovative design, technological capability, or an unusually positive brand image Ex.: High-end audio equipment

15 Sustaining a Competitive Advantage Competitive advantage counts for little if it cannot be sustained over the long-term. Factors reducing competitive advantage Evolutionary changes in the industry Technological changes Customer preferences Imitation by competitors Defending competitive advantage Patents, copyrights, trademarks, regulations, and tariffs Competing on price Long-term contracts with suppliers (and customers)

16 Global Competition and National Competitive Advantage Global competition occurs when a firm takes a global view of competition and sets about maximizing profits worldwide The effect is beneficial to consumers because prices generally fall as a result of global competition While creating value for consumers, it can destroy the potential for jobs and profits

17 Global Competition and National Competitive Advantage

18 Factor Conditions Human Resources the quantity of workers available, skills possessed by those workers, wage levels, and work ethic Physical Resources the availability, quantity, quality, and cost of land, water, minerals, and other natural resources Knowledge Resources the availability within a nation of a significant population having scientific, technical, and market-related knowledge

19 Factor Conditions Capital Resources the availability, amount, cost, and types of capital available; also includes savings rate, interest rates, tax laws, and government deficit Infrastructure Resources this includes a nation s banking, healthcare, transportation, and communication systems

20 Related and Supporting Industries: The advantage that a nation gains by being home to internationally competitive industries in fields that are related to, or in direct support of, other industries Globally-competitive supplier industries provide inputs to downstream industries. They are globally competitive in terms of price and quality and gain competitive advantage. Downstream industries have easier access to inputs and technology, and to the managerial and organizational structures that made them competitive.

21 Demand Conditions are the factors that either train firms for world-class competition or that fail to adequately prepare them to compete in the global marketplace. Three characteristics of home demand are important to creation of competitive advantage: Composition of Home Demand. This demand element determines how firms perceive, interpret, and respond to buyer needs. Size and Pattern of Growth of Home Demand. These are important only if the composition of the home demand is sophisticated and anticipates foreign demand. If home demand reflects or anticipates foreign demand, large-scale facilities and programs will be an advantage in global competition. Rapid home market growth. This is an incentive to invest in and adopt new technologies faster, and to build large, efficient facilities. Early market saturation puts pressure on a company to expand into international markets and innovate.

22 Firm Strategy, Structure, and Rivalry Domestic rivalry in a single national market is a powerful influence on competitive advantage The absence of significant domestic rivalry can lead to complacency in the home firms and eventually cause them to become noncompetitive in the world markets It is not the number of domestic rivals that is important; rather, it is the intensity of the competition and the quality of the competitors that make the difference. Differences in management styles, organizational skills, and strategic perspectives create advantages and disadvantages. For example, German company structure is hierarchical while Italian firms run like small family businesses.

23 Current Issues in Competitive Advantage Today s business environment, market stability is undermined by: Short product life cycles Short product design cycles New technologies Globalization Result is an escalation and acceleration of competitive forces

MKTG 680. Chapter 15 Strategic Elements of Competitive Advantage. Porter s Five Forces. Industry Analysis: Forces Influencing Competition

MKTG 680. Chapter 15 Strategic Elements of Competitive Advantage. Porter s Five Forces. Industry Analysis: Forces Influencing Competition MKTG 680 Chapter 15 Strategic Elements of Industry Analysis: Forces Influencing Competition Industry group of firms that produce products that are close substitutes for each other Porter s Five forces

More information

Availability of substitute products places limits on the prices market leaders can charge High prices induce buyers to switch to the substitute

Availability of substitute products places limits on the prices market leaders can charge High prices induce buyers to switch to the substitute Strategic Elements of Competitive Advantage Industry Analysis: Forces Influencing Competition Power of Suppliers Global Marketing Chapter 15 Power of Buyers Substitute Products Barriers to Entry Industry

More information

Shaping. Business Strategy. Through. Competitive Intelligence. Strategic Use of. Intellectual Property Information

Shaping. Business Strategy. Through. Competitive Intelligence. Strategic Use of. Intellectual Property Information Shaping This project is funded by the EU Business Strategy Through Competitive Intelligence Strategic Use of Intellectual Property Information Strategic Planning Process Business Strategy Definition This

More information

A primer in Entrepreneurship

A primer in Entrepreneurship Prof. Dr. Institute for Strategy and Business Economics Spring semester2008 Chapter 5: Industry and Competitor Analysis Table of Contents I. Industry Analysis II. IV. The Importance of Industry Versus

More information

Competitive Environment - Five Forces

Competitive Environment - Five Forces Competitive Environment - Five Forces The nature of industry competition and profits Every market or industry is different. Take any selection of industries and you should be able to find differences between

More information

Competitive Advantage

Competitive Advantage Competitive Advantage When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals. The goal of much of business strategy is

More information

A primer in Entrepreneurship

A primer in Entrepreneurship Prof. Dr. Institutefor Strategy and Business Economics Where we are: Step 1 Step 2 Developing Successful Business Ideas 2008 Prentice Hall Chapter 5: Industry and Competitor Analysis Table of Contents

More information

Competitive Environment Five Forces

Competitive Environment Five Forces Competitive Environment Five Forces Porter s Five Forces Devised by Michael Porter A framework for analysing the nature of competition within an industry Every industry is different Size Structure Distribution

More information

Retail Marketing Strategy

Retail Marketing Strategy Chapter 5 Retail Marketing Strategy PPT McGraw-Hill/Irwin 5-1 Levy/Weitz: Retailing Management, 5/e Copyright 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Elements in Retail Strategy Target

More information

THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY

THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY THE COMPETITIVE ADVANTAGE THEORY AS A GROWTH STRATEGY Management Marketing - Tourism Ec. Ecaterina Nicoleta Ciurez Ph.D University of Craiova, Faculty of Economics and Business Administration, Craiova,

More information

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Business-Level Strategy: Creating and Sustaining Competitive Advantages Business-Level Strategy: Creating and Sustaining Competitive Advantages Chapter Five McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives After reading

More information

Strategy & the firm. Value creation. Value creation

Strategy & the firm. Value creation. Value creation 1 Strategy & the firm Strategy: actions that managers must take to attain the goals of the firm Main goal usually to maximize long- term profit (П)( Profitability defined by return on sales or return on

More information

Customer Relationship Management and Five Forces Analysis in Nonprofit Organization in Oman

Customer Relationship Management and Five Forces Analysis in Nonprofit Organization in Oman International Journal of Scientific and Research Publications, Volume 6, Issue 1, January 2016 436 Customer Relationship Management and Five Forces Analysis in Nonprofit Organization in Oman Ahmed Al-Arafati

More information

ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model

ESSENTIALS OF ENTREPRENEURSHIP AND SMALL BUSINESS MANAGEMENT Chapter 4: Conducting a Feasibility Analysis and Designing a Business Model Copyright 2016 Pearson Education, Inc. Copyright 2016 Pearson Education Inc 1 4-1 Section 2: The Entrepreneurial Journey Begins 4 Conducting a Feasibility Analysis and Designing a Business Model Copyright

More information

PORTER S STRATEGY, VALUE CHAINS AND COMPETITIVE ADVANTAGE

PORTER S STRATEGY, VALUE CHAINS AND COMPETITIVE ADVANTAGE PORTER S STRATEGY, VALUE CHAINS AND COMPETITIVE ADVANTAGE Vasile Voicu Pantea, Luiela Magdalena Csorba, Olga Irina Maxim University Aurel Vlaicu of Arad Abstract: A strategy means the plans and actions

More information

Case Interview - Frameworks

Case Interview - Frameworks WWW.MCONSULTINGPREP.COM Case Interview - Frameworks For more free and detailed materials on Management Consulting Preparation, visit www.mconsultingprep.com 2014 MConsultingPrep, Inc. COMPLETE FRAMEWORKS

More information

Information Systems, Organizations, and Strategy

Information Systems, Organizations, and Strategy Information Systems, Organizations, and Strategy VIDEO CASES Chapter 3 Case 1: National Basketball Association: Competing on Global Delivery with Akamai OS Streaming Case 2: IT and Geo-Mapping Help a Small

More information

SUPPLIERS INDUSTRY RIVALRY CUSTOMERS. Entrant Suppliers Buyers

SUPPLIERS INDUSTRY RIVALRY CUSTOMERS. Entrant Suppliers Buyers TECHNIQUE PORTER S COMPETITIVE ANALYSIS MODIFIED DETERMINANTS OF THE 5 FORCES OF PORTER S COMPETITIVE ANALYSIS*I NEW ENTRANTS SUPPLIERS INDUSTRY RIVALRY CUSTOMERS Notes SUBSTITUTES i) Need to keep in mind

More information

Analyzing an Industry s Structure. Game-1303 Intro to Game Dev Sara R. Farr

Analyzing an Industry s Structure. Game-1303 Intro to Game Dev Sara R. Farr Analyzing an Industry s Structure Game-1303 Intro to Game Dev Sara R. Farr Game Industry Segments Some of the Game Industry Segments are: Console (Hardware or Software) PC Handheld Mobile Casual Online

More information

Learning Objectives: Quick answer key: Question # Multiple Choice True/False

Learning Objectives: Quick answer key: Question # Multiple Choice True/False 0 Learning Objectives: 11.1 Describe the advantages and disadvantages of the most common forms of business ownership. 11.2 Identify the stakeholders of a business and describe why they are important. 11.3

More information

Application of Porter s Five Forces Model Paper

Application of Porter s Five Forces Model Paper Application of Porter s Five Forces Model Paper Example 1: Fast Casual Industry The Porter s Five Forces Model illustrates how the competitive landscape in an industry is impacted by five prominent forces.

More information

Course 103402 MIS. Information Systems, Organizations and Strategies

Course 103402 MIS. Information Systems, Organizations and Strategies Oman College of Management and Technology Course 103402 MIS Topic 2 Information Systems, Organizations and Strategies CS/MIS Department Organizations and Information Systems Information technology and

More information

CHAPTER 11 INTERNATIONAL STRATEGY AND ORGANIZATION

CHAPTER 11 INTERNATIONAL STRATEGY AND ORGANIZATION CHAPTER 11 INTERNATIONAL STRATEGY AND ORGANIZATION LEARNING OBJECTIVES: 1. Explain the stages of identification and analysis that precede strategy selection. 2. Identify the two international strategies

More information

4. Strategy and Competitive Advantage. 4.1 Types of Strategy. 4.1.1 Cost Leadership Strategy

4. Strategy and Competitive Advantage. 4.1 Types of Strategy. 4.1.1 Cost Leadership Strategy 4. Strategy and Competitive Advantage 4.1 Types of Strategy 4.1.1 Cost Leadership Strategy The goal of Cost Leadership Strategy is to offer products or services at the lowest cost in the industry. The

More information

Achieving Competitive Advantage with Information Systems

Achieving Competitive Advantage with Information Systems Chapter 3 Achieving Competitive Advantage with Information Systems 3.1 Copyright 2011 Pearson Education, Inc. STUDENT LEARNING OBJECTIVES How does Porter s competitive forces model help companies develop

More information

SAMPLE COURSE OUTLINE ECONOMICS GENERAL YEAR 11

SAMPLE COURSE OUTLINE ECONOMICS GENERAL YEAR 11 SAMPLE COURSE OUTLINE ECONOMICS GENERAL YEAR 11 Copyright School Curriculum and Standards Authority, 2014 This document apart from any third party copyright material contained in it may be freely copied,

More information

GLOSSARY OF STRATEGIC MANAGEMENT TERMS

GLOSSARY OF STRATEGIC MANAGEMENT TERMS GLOSSARY OF STRATEGIC MANAGEMENT TERMS Acquisition: When one company, the acquirer, purchases and absorbs the operations of another, the acquired. Barriers to Entry/Exit: Economic or other characteristics

More information

Analyze the Hotel Industry in Porter Five Competitive Forces

Analyze the Hotel Industry in Porter Five Competitive Forces Analyze the Hotel Industry in Porter Five Competitive Forces Dr. David S. Y. Cheng, Faculty (Business) Upper Iowa University Hong Kong Campus ABSTRACT This article is going to discuss the strengths and

More information

Using Information Systems to Achieve Competitive Advantage. Porter s Competitive Forces Model

Using Information Systems to Achieve Competitive Advantage. Porter s Competitive Forces Model Porter s Competitive Forces Model One way to understand competitive advantage Five competitive forces shape fate of firm 1. Traditional competitors Competitors in market space continuously devise new products,

More information

REVIEW ONE. Name: Class: Date: Matching

REVIEW ONE. Name: Class: Date: Matching Name: Class: Date: ID: A REVIEW ONE Matching Complete the following using these terms. a. outsourcing b. diversity c. entrepreneur d. competitive differentiation e. strategic alliance f. capital g. vision

More information

Professor: Dr. Mary Flannery Teaching Assistant: Jia-Yuh Chen ECON 136 Business Strategy February 27, 2006

Professor: Dr. Mary Flannery Teaching Assistant: Jia-Yuh Chen ECON 136 Business Strategy February 27, 2006 CASE STUDY Professor: Dr. Mary Flannery Teaching Assistant: Jia-Yuh Chen ECON 136 Business Strategy February 27, 2006 INDUSTRY ANALYSIS The retail industry is dominated by few retail giants, with Wal-Mart

More information

whatmakesagoodleader.com

whatmakesagoodleader.com Table of Contents (Click headings to Navigate) 1. Executive Summary...3 1.1. Preferred Option...3 1.2. Alternatively...3 2. Analysis...4 2.1. Vision / Mission Analysis...4 2.2. Objectives...4 2.3. Macro

More information

J.P. MORGAN CHASE & CO.: THE CREDIT CARD SEGMENT OF

J.P. MORGAN CHASE & CO.: THE CREDIT CARD SEGMENT OF SENEM ACET COSKUN BUS 9200 - FALL 2008 - MIDTERM J.P. MORGAN CHASE & CO.: THE CREDIT CARD SEGMENT OF THE FINANCIAL SERVICES INDUSTRY I-Executive Summary Consumers are increasingly using plastic cards and

More information

Coca-Cola Case Analyses.

Coca-Cola Case Analyses. <Student Name> <Name and Section # of course> <Instructor Name> <Date> Running Head: COCA-COLA CASE Coca-Cola Case Analyses Coca-Cola Case 2 Coca-Cola Case Analyses This paper is about the company Coca-Cola

More information

Existing Analytical Market Assessment Tools - Definitions

Existing Analytical Market Assessment Tools - Definitions Existing Analytical Market Assessment Tools - Definitions November, 2003 This list of market assessment tools was prepared by Development Alternatives Inc. (DAI) as an internal working document to support

More information

THE POLISH BUSINESS ENVIRONMENT FOR LANGUAGE SERVICE PROVIDERS IN VIEW OF THE PORTER S FIVE FORCES MODEL

THE POLISH BUSINESS ENVIRONMENT FOR LANGUAGE SERVICE PROVIDERS IN VIEW OF THE PORTER S FIVE FORCES MODEL International Journal of Emerging and Transition Economies Vol. 5, No. 1-2, 2012, 57-64 THE POLISH BUSINESS ENVIRONMENT FOR LANGUAGE SERVICE PROVIDERS IN VIEW OF THE PORTER S FIVE FORCES MODEL Monika Kowalska

More information

A Review for the Strategic Research Project

A Review for the Strategic Research Project A Review for the Strategic Research Project The purpose of an external audit is to develop a finite list of opportunities that could benefit a firm and avoid threats. External forces can be divided into

More information

RECOMMENDATIONS ON BUSINESS PLAN PREPARATION

RECOMMENDATIONS ON BUSINESS PLAN PREPARATION RECOMMENDATIONS ON BUSINESS PLAN PREPARATION 1. General provisions Business plan must contain: name of the investment project, as well description of its essence and feasibility; substantiation of the

More information

INFO1400. Define an organization and compare the technical definition of organizations with the behavioral definition.

INFO1400. Define an organization and compare the technical definition of organizations with the behavioral definition. Chapter 3 INFO1400 Review Questions 1. Which features of organizations do managers need to know about to build and use information systems successfully? What is the impact of information systems on organizations?

More information

Alexander Nikov. 3. Information Systems and Organisational Issues. Learning Objectives. Verizon or AT&T: Which Company Has the Best Digital Strategy?

Alexander Nikov. 3. Information Systems and Organisational Issues. Learning Objectives. Verizon or AT&T: Which Company Has the Best Digital Strategy? INFO 1500 Introduction to IT Fundamentals Learning Objectives 3. Information Systems and Organisational Issues 1. Identify and describe important features of organizations that managers need to know about

More information

Information Systems and Business Strategy. Chapter 3 (9E) Ch 3 & Questions

Information Systems and Business Strategy. Chapter 3 (9E) Ch 3 & Questions Information Systems and Business Strategy Chapter 3 (9E) 10/7/2007 Laudon & Laudon 1 Ch 3 & Questions 1. What are information systems? Explain the nature and interaction of technology, people, and organizational

More information

CHAPTER 4 COMPETITIVE ANALYSIS FOR STRUCTUAL ATTRACTIVENESS

CHAPTER 4 COMPETITIVE ANALYSIS FOR STRUCTUAL ATTRACTIVENESS By Roshan pant MBM 2 nd semester CHAPTER 4 Nepal Commerce Campus COMPETITIVE ANALYSIS FOR STRUCTUAL ATTRACTIVENESS Concept of Competition: This is the age of competition. Marketers must carefully identify

More information

Chapter 7: Market Structure in Government and Nonprofit Industries. Soft Drinks. What is a Market? Do NFPs Compete? Some NFPs Compete Directly

Chapter 7: Market Structure in Government and Nonprofit Industries. Soft Drinks. What is a Market? Do NFPs Compete? Some NFPs Compete Directly Chapter 7: Market Structure in Government and Nonprofit Industries Soft Drinks HTTP:/www.economics.emory.edu/Working_Pa pers/wp/2008wp/frisvold_08_08_paper.pdf What is a Market? A market is a process in

More information

E3- Strategic Management Practice Test Answers

E3- Strategic Management Practice Test Answers E3- Strategic Management Practice Test Answers The Practice Test can be viewed at http://www.pearsonvue.com/cima/practiceexams/ These answers have been provided by CIMA for information purposes only. In

More information

Porter s 5 forces model

Porter s 5 forces model Porter Competitive Model? Porter s 5 forces model What is it? q A model to help understand the competitive environment in which a company operates. What are the 5 forces? q Intra-Industry Competition q

More information

The impact of external environment on organizational development strategy

The impact of external environment on organizational development strategy MPRA Munich Personal RePEc Archive The impact of external environment on organizational development strategy Alina Voiculet and Nicoleta Belu and Denisa Elena Parpandel and Ionela Carmen Rizea Constantin

More information

Management Information Systems

Management Information Systems Chapter 2 Compiled By: Muzammil Ahmad Khan Muhammad Kashif Shaikh 2-1 MIS Books Text Book 1. Management Information System, 8 th Edition By: James A. O' Brien, George Marakas Reference Books 1. Management

More information

ISM 50 - Business Information Systems

ISM 50 - Business Information Systems ISM 50 - Business Information Systems Lecture 4 Instructor: John Musacchio UC Santa Cruz April 7, 2005 Announcements Forum working now Previous posts were not lost. Read Ch3.1 thru 3.3 and Frito Lay case

More information

1. Which segment do ebay, Amazon.com, and LandsEnd.com belong? 2. Which segment focuses on consumers dealing with each other?

1. Which segment do ebay, Amazon.com, and LandsEnd.com belong? 2. Which segment focuses on consumers dealing with each other? 1. Which segment do ebay, Amazon.com, and LandsEnd.com belong? A) B2Bs B) B2Cs C) C2Bs D) C2Cs 2. Which segment focuses on consumers dealing with each other? A) B2B B) B2C C) C2B D) C2C 3. Which segment

More information

CHAPTER 11 PRODUCT STRATEGIES: BRANDING AND PACKAGING DECISIONS

CHAPTER 11 PRODUCT STRATEGIES: BRANDING AND PACKAGING DECISIONS CHAPTER 11 PRODUCT STRATEGIES: BRANDING AND PACKAGING DECISIONS MULTIPLE CHOICE 1. Which of the following cannot be used as a trademark? a) a word b) a name c) a symbol d) a device e) all of them can be

More information

4. Market Structures. Learning Objectives 4-63. Market Structures

4. Market Structures. Learning Objectives 4-63. Market Structures 1. Supply and Demand: Introduction 3 2. Supply and Demand: Consumer Demand 33 3. Supply and Demand: Company Analysis 43 4. Market Structures 63 5. Key Formulas 81 2014 Allen Resources, Inc. All rights

More information

Teaching Note DuPont Cleaning Products Division 1

Teaching Note DuPont Cleaning Products Division 1 Case Overview Teaching Note DuPont Cleaning Products Division 1 Stuart Heggie, business manager of DuPont Canada s Household and Institutional Cleaning Division, is pondering the future direction of the

More information

THE INDUSTRIAL ENVIRONMENT ANALYSIS AUTHOR

THE INDUSTRIAL ENVIRONMENT ANALYSIS AUTHOR THE INDUSTRIAL ENVIRONMENT ANALYSIS AUTHOR DR.MAHESH, M.Com., M.Phil.,NET.,MBA.,PH.D., HEAD,PG AND RESEARCH, DEPARTMENT OF COMMERCE, MEENAKSHI CHANDRASEKARAN COLLEGE OF ARTS AND SCIENCE, KARAMBAYAM, PATTUKKOTTAI.

More information

Bluebird Business Plan

Bluebird Business Plan Bluebird Business Plan Table of Contents Table of Contents 1 Executive Summary 2 Description of the Business. 3 The Problem 3 The Solution 3 Mission 3 Product Description 4 Intellectual Property 4 Marketing

More information

Chapter 11: The Strategy of International Business

Chapter 11: The Strategy of International Business Chapter 11: The of International Business Localization : Local country managers have the power of manufacturing and marketing Global : Corporate center exercise more control over manufacturing, marketing

More information

INTRODUCTION OLIGOPOLY CHARACTERISTICS OF MARKET STRUCTURES DEGREES OF POWER DETERMINANTS OF MARKET POWER

INTRODUCTION OLIGOPOLY CHARACTERISTICS OF MARKET STRUCTURES DEGREES OF POWER DETERMINANTS OF MARKET POWER INTRODUCTION Questions examined in this chapter include: What determines how much market power a firm has? How do firms in an oligopoly set prices and output? What problems does an oligopoly have in maintaining

More information

Chapter 7: Market Structures Section 3

Chapter 7: Market Structures Section 3 Chapter 7: Market Structures Section 3 Objectives 1. Describe characteristics and give examples of monopolistic competition. 2. Explain how firms compete without lowering prices. 3. Understand how firms

More information

BASES OF COMPETITIVE ADVANTAGE: THE `STRATEGY

BASES OF COMPETITIVE ADVANTAGE: THE `STRATEGY DO YOU HAVE A COMPETITIVE STRATEGY? Many managers talk about the importance of developing an effective competitive strategy. Indeed since Michael Porter wrote about this in 1980 it has become a central

More information

Module 7 8/12/2010. What types of strategies are used by organizations? How are strategies formulated and

Module 7 8/12/2010. What types of strategies are used by organizations? How are strategies formulated and Module 7 Module 7 Strategy and Strategic Management What types of strategies are used by organizations? How are strategies formulated and implemented? 7.1 Types of organizational strategies Comprehensive

More information

Seminar. The Organization of International Business Chapter 15. 11 Kasım 14 Salı 15-

Seminar. The Organization of International Business Chapter 15. 11 Kasım 14 Salı 15- Seminar The Organization of International Business Chapter 15 Learning Objectives p Profile the evolving process of organizing a company for international business p Describe the features of classical

More information

Fair Competition Commission. THE FAIR COMPETITION COMMISSION PROCEDURE RULES, 2013 Rule 33(2) MERGER NOTIFICATION (Application for Merger Clearance)

Fair Competition Commission. THE FAIR COMPETITION COMMISSION PROCEDURE RULES, 2013 Rule 33(2) MERGER NOTIFICATION (Application for Merger Clearance) FCC.8 Fair Competition Commission THE FAIR COMPETITION COMMISSION PROCEDURE RULES, 2013 Rule 33(2) To: The Fair Competition Commission MERGER NOTIFICATION (Application for Merger Clearance) Application

More information

'LJL7D/ 0(',$ 0JPW Digital Strategies tisdag den 29 september 2009

'LJL7D/ 0(',$ 0JPW Digital Strategies tisdag den 29 september 2009 Digital Strategies The beginning of the end Today - Internet & Strategy Tuesday 29th - Management and ethics Wednesday (30th) - Seminar presentations Next Wednesday (7th)- Seminar presentations Thursday

More information

Edwards Jones 2006 Case Analysis. Next Step Consulting

Edwards Jones 2006 Case Analysis. Next Step Consulting Edwards Jones 2006 Case Analysis Next Step Consulting Industry Industry SIC Code: 6211 Security Brokers, Dealers, and Flotation Companies Establishment that deal with: Securities Mutual and money market

More information

Achieving Competitive Advantage with Information Systems. Lecture Note 003 TIM50, 2012 Autumn

Achieving Competitive Advantage with Information Systems. Lecture Note 003 TIM50, 2012 Autumn Achieving Competitive Advantage with Information Systems Lecture Note 003 TIM50, 2012 Autumn Announcements 1. HW # 1 due Next Thursday paper or electronic submission(web page) 2. Business Paper Preferences,

More information

Internet and competitive advantages

Internet and competitive advantages Internet and competitive advantages INTERNATIONAL BUSINESS STRATEGIES II December 10/12/2003 Morten Rask www.morten-rask.dk Agenda: Porter and the case Main message Five forces (can be very wrong) The

More information

Strategy is about organizational change.1 An action is strategic when it allows a

Strategy is about organizational change.1 An action is strategic when it allows a 0 0 0 I NTRODUCTION Different views of strategy Strategy is about organizational change. An action is strategic when it allows a firm to become better than its competitors, and when this competitive advantage

More information

UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES. Monopolistic Competition

UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES. Monopolistic Competition UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES Monopolistic Competition Market Structure Perfect Competition Pure Monopoly Monopolistic Competition Oligopoly Duopoly Monopoly The further right on

More information

MODULE TITLE: Foundations of Marketing

MODULE TITLE: Foundations of Marketing SCHOOL OF ARTS, SOCIAL SCIENCES AND MANAGEMENT DIVISION OF BUSINESS, ENTERPRISE AND MANAGEMENT LEVEL 1 DIET 1 MODULE CODE: B1072 MODULE TITLE: Foundations of Marketing DATE: 16/12/2014 WRITING TIME: 2

More information

A Knowledge Base Representing Porter's Five Forces Model

A Knowledge Base Representing Porter's Five Forces Model A Knowledge Base Representing Porter's Five Forces Model Henk de Swaan Arons (deswaanarons@few.eur.nl) Philip Waalewijn (waalewijn@few.eur.nl) Erasmus University Rotterdam PO Box 1738, 3000 DR Rotterdam,

More information

1. Planning - Establishing organizational goals and deciding how to accomplish them

1. Planning - Establishing organizational goals and deciding how to accomplish them 1 : Understanding the Management Process Basic Management Functions 1. Planning - Establishing organizational goals and deciding how to accomplish them SWOT analysis - The identification and evaluation

More information

Marketing Plan. Contents. Introduction: Using the Marketing Planning Framework. The Elements of the Marketing Planning Framework

Marketing Plan. Contents. Introduction: Using the Marketing Planning Framework. The Elements of the Marketing Planning Framework Marketing Plan Contents Introduction: Using the Marketing Planning Framework The Elements of the Marketing Planning Framework Terms of Reference Executive Summary 1. Business Mission 2. External Marketing

More information

E-Commerce Business Models and Concepts

E-Commerce Business Models and Concepts Copyright 2002 Pearson Education, Inc. Slide 2-1 E-Commerce Business Models and Concepts Created by, David Zolzer, Northwestern State University Louisiana Learning Objectives! Identify the key components

More information

Business Plan Template Job Creation Social Enterprise

Business Plan Template Job Creation Social Enterprise Business Plan Template Job Creation Social Enterprise Enterprise ABC Agency XYZ Prepared by: Last Revised: 08 October 2009 TABLE OF CONTENTS 1. BUSINESS DESCRIPTION... 3 1.1. Enterprise and agency overview...

More information

The Economics of E-commerce and Technology. Industry Analysis

The Economics of E-commerce and Technology. Industry Analysis The Economics of E-commerce and Technology Industry Analysis 1 10/1/2013 Industry Profits In Econ 11, Economic Profits = 0 In reality, many industries have much higher profits: 2 10/1/2013 Industry Analysis

More information

GEORGIA PERFORMANCE STANDARDS International Domain [Type the author name]

GEORGIA PERFORMANCE STANDARDS International Domain [Type the author name] GEORGIA PERFORMANCE STANDARDS International Domain [Type the author name] GEORGIA PERFORMANCE STANDARDS INTERNATIONAL ECONOMICS Fundamental Economic Concepts SSEF3 The student will explain how specialization

More information

Case Analysis Framework - Strategic Management Ian Lee, Ph.D Carleton University Ottawa, Canada ianlee@ibm.net

Case Analysis Framework - Strategic Management Ian Lee, Ph.D Carleton University Ottawa, Canada ianlee@ibm.net Case Analysis Framework - Strategic Management Ian Lee, Ph.D Carleton University Ottawa, Canada ianlee@ibm.net Stratrategic Management National/Macro Context Industry Context Company Resources, Capabilities,

More information

FLEXIBLE EXCHANGE RATES

FLEXIBLE EXCHANGE RATES FLEXIBLE EXCHANGE RATES Along with globalization has come a high degree of interdependence. Central to this is a flexible exchange rate system, where exchange rates are determined each business day by

More information

APPLE INC. BUS 478: Group Written Case Synopsis

APPLE INC. BUS 478: Group Written Case Synopsis APPLE INC. BUS 478: Group Written Case Synopsis Xiaoyi Zhuang Kelvin Cheung Edith Tang Jessica Xu Helen Li INTRODUCTION Background in Brief Apple is an American corporation that develops and sells computer

More information

THIRD PARTY LIABILITY Market Forces

THIRD PARTY LIABILITY Market Forces ASIA OFFSHORE ENERGY CONFERENCE 2014 Intercontinental Hotel, Jimbaran, Bali, Indonesia 24 26th September 2014 THIRD PARTY LIABILITY Market Forces George Nassaouati of JLT Specialty / LPL Agenda 1. THIRD

More information

! Giving the subscribers a choice of watching streaming content or receiving quickly delivered DVDs by mail.

! Giving the subscribers a choice of watching streaming content or receiving quickly delivered DVDs by mail. Netflix s Business Model and Strategy in renting Movies and TV Episodes Reed Hastings, founder and CEO, launched Netflix as an online rental movie service in 1999. Netflix is a company that distributes

More information

Chapter by Prentice Hall

Chapter by Prentice Hall Chapter 3 Achieving Competitive Advantage with Information Systems 3.1 2007 by Prentice Hall STUDENT LEARNING OBJECTIVES How does Porter s competitive forces model help companies develop competitive strategies

More information

Short Answer Questions Chapter 1-6

Short Answer Questions Chapter 1-6 Short Answer Questions Chapter 1-6 Chapter One (1) 1. Briefly define each of the following terms: a. Strategy b. Sustainable competitive advantage c. Business model 2. Identify and briefly describe the

More information

Marks & Spencer. Marks & Spencer was founded on 1884 as a market stall by Marks. It became Marks &

Marks & Spencer. Marks & Spencer was founded on 1884 as a market stall by Marks. It became Marks & Marks & Spencer Marks & Spencer was founded on 1884 as a market stall by Marks. It became Marks & Spencer in 1894 as a partnership with Spencer. From that humble beginning Marks & Spencer became leader

More information

Chapter 2: Analyzing a Dealership s Financial Statements & Operations

Chapter 2: Analyzing a Dealership s Financial Statements & Operations Chapter 2: Analyzing a Dealership s Financial Statements & Operations To analyze a dealership s operations, a close look must be taken at the day to day operations as well as examining the dealership s

More information

Preparing A Business Plan. Presented By: Raed Daoudi

Preparing A Business Plan. Presented By: Raed Daoudi Preparing A Business Plan Presented By: Raed Daoudi The Business Plan Whether it s a start-up company, an expansion of an existing firm, a spin-off from a parent corporation, or even a project within a

More information

WHICH AIRLINE MANUFACTURER WILL BE THE INDUSTRY LEADER IN THE NEXT 5 YEARS BOEING OR AIRBUS? David Burdick, Joseph DiPonzio.

WHICH AIRLINE MANUFACTURER WILL BE THE INDUSTRY LEADER IN THE NEXT 5 YEARS BOEING OR AIRBUS? David Burdick, Joseph DiPonzio. WHICH AIRLINE MANUFACTURER WILL BE THE INDUSTRY LEADER IN THE NEXT 5 YEARS BOEING OR AIRBUS? David Burdick, Joseph DiPonzio Alfred University May 1, 2013 Page 1 Introduction Boeing and Airbus are two of

More information

Healthcare Reform and Small Businesses

Healthcare Reform and Small Businesses Healthcare Reform and Small Businesses Presentation by Terry Gardiner Small Business Majority June 24-25, 2010 About Small Business Majority Small Business Majority is a nonprofit, nonpartisan organization

More information

Introducing Competitive Strategy

Introducing Competitive Strategy Introducing Competitive Strategy Econ 466 Spring, 2010 Concepts and vocabulary in strategy Competition is a driving force in market economies How do firms compete? What determines a firm s competitive

More information

Maximizing Your Value-Add: Conducting a Best-in-Class Market Analysis

Maximizing Your Value-Add: Conducting a Best-in-Class Market Analysis Maximizing Your Value-Add: Conducting a Best-in-Class Market Analysis Dr. George L. Harris, President Calyptus Consulting Group, Inc. 781-674-0041; gharris@calyptusgroup.com 93 rd Annual International

More information

BUS 478: Business Strategy Case Synopsis

BUS 478: Business Strategy Case Synopsis BUS 478: Business Strategy Case Synopsis Richard Le: 301168639 Ryan Lalonde: 301181578 Tianhan Xia: 301170081 Xyleen Haban: 301135554 November 10, 2014 Firm History Groupon is a publicly owned daily deal

More information

Models of Imperfect Competition

Models of Imperfect Competition Models of Imperfect Competition Monopolistic Competition Oligopoly Models of Imperfect Competition So far, we have discussed two forms of market competition that are difficult to observe in practice Perfect

More information

INDUSTRY REPORT ON AIRBAG INDUSTRY

INDUSTRY REPORT ON AIRBAG INDUSTRY INDUSTRY REPORT ON AIRBAG INDUSTRY AIRBAG MARKET GROWTH DRIVERS: Key drivers for airbags industry are: Federal regulation-first and foremost Public awareness General increase in concerns for safety Development

More information

Bingo glossary marketing mix

Bingo glossary marketing mix Bingo glossary marketing mix The management process which identifies customer wants, anticipates their future wants and then goes about satisfying them profitably. Where the market has been divided up

More information

Creating Powerful Brands. Malcolm McDonald and Leslie de Chernatony. Theme of the Book

Creating Powerful Brands. Malcolm McDonald and Leslie de Chernatony. Theme of the Book Malcolm McDonald and Leslie de Chernatony Butterworth Heinemann, September 2003, 496 pages ISBN 0750659807 Theme of the Book A thorough and practical analysis of the essential elements of branding, giving

More information

Economics. Social Studies Curriculum Framework. Revised 2006 Amended June 2009

Economics. Social Studies Curriculum Framework. Revised 2006 Amended June 2009 Economics Social Studies Curriculum Framework Revised 2006 Course Title: Economics Course/Unit Credit: 0.5 Course Number: 4743000 Teacher Licensure: Please refer to the Course Code Management System (https://adedata.arkansas.gov/ccms/)

More information

When companies underestimate low-cost rivals

When companies underestimate low-cost rivals 1 J U N E 2 0 1 0 When companies underestimate low-cost rivals Attackers are threatening premium players in market after market and not only at the low end. Adrian Ryans 2 When low-cost competitors appear,

More information

Industry Analysis: The Five Forces

Industry Analysis: The Five Forces PURDUE EXTENSION EC-722 Industry Analysis: The Five Forces Cole Ehmke, Joan Fulton, and Jay Akridge Department of Agricultural Economics Kathleen Erickson, Erickson Communications Sally Linton Department

More information

Economic Resources and Systems

Economic Resources and Systems Chapter 2 Economic Resources and Systems Section 2.2 Economic Systems Click here to advance to the next slide. Read to Learn Describe the three basic economic questions each country must answer to make

More information

WORKSHOP #4 CUSTOMER TARGETING (MARKETING) STRATEGY

WORKSHOP #4 CUSTOMER TARGETING (MARKETING) STRATEGY WORKSHOP #4 CUSTOMER TARGETING (MARKETING) STRATEGY THE FUNDAMENTAL ELEMENTS OF THE DEFINITION OF A CUSTOMER TARGETING (MARKETING) STRATEGY Corporate Strategy Mission of the firm Strategic thrusts and

More information

Life Insurance in Pakistan, Key Trends and Opportunities to 2016

Life Insurance in Pakistan, Key Trends and Opportunities to 2016 Brochure More information from http://www.researchandmarkets.com/reports/2225320/ Life Insurance in Pakistan, Key Trends and Opportunities to 2016 Description: Synopsis The report provides in depth market

More information