Industry Analysis: Porter s Five Forces Model
|
|
- Winfred Richard
- 7 years ago
- Views:
Transcription
1 Industry Analysis: Porter s Five Forces Model Michael McDermott mcdermottm1@nku.edu
2 Exhibit 2.1 Layers of the business environment 2
3 PEST Analysis is Complete (see previous slides) Remember the PEST focuses upon the remote external environment These are the factors that NO company can control But the company MUST heed the conclusions from its PEST analysis Aligning with such trends is very wise Ignoring them is very risky if not foolish 3
4 Scenario Planning
5 Scenario Planning This demands consideration of a range of scenarios To be meaningful, if should include the most optimistic and most pessimistic scenarios This is intended to compel executives to ask the what if questions 5
6 Scenario Planning Organizations sometimes undertake this exercise The aim is to construct scenarios and then consider the strategic implications of these 6
7 Scenario Planning in the Auto industry Price of oil is $200 per barrel; Price of oil is $100 pb Price of oil is $50 pb Price of oil is $30 pb 7
8 Scenario Planning and the Auto Industry Scenario Price of oil is $200 per barrel Price of oil is $100 pb Price of oil is $50 pb Price of oil is $30 pb Implication(s) for auto company 8
9 Scenario Planning in the Auto industry Now that is very simplistic and considers only one variable an economic factor Clearly proper scenario planning would be much more sophisticated, and factor in multiple variables to identify many scenarios 9
10 Industry Analysis
11 The point of industry analysis is not to declare the industry attractive or unattractive but to understand the underpinnings of competition and the root causes of profitability Michael Porter, The Five Competitive Forces that Shape Strategy, Harvard Business Review, January
12 Defining the Relevant Industry Quality of industry analysis is compromised if it is not well defined Avoid defining it too broadly obscures differences among products, customers or geographic regions Avoid defining it too narrowly overlook s commonalities 12
13 Defining an Industry: Employ two key dimensions Scope of Products or Services The one product may be sold to very different buyers and thus despite product similarities, we have two or more industries: Motor oil is sold for lawn mowers, cars, trucks and thus we have three industries as the industry structure is very different Geographic scope Most industries exist in many countries. Is competition local, national, regional or global? 13
14 Steps in Industry Analysis 1. Define the relevant industry 2. Identify participants who are: The buyers and buyer groups The suppliers and supplier groups The competitors The substitutes The potential entrants 14
15 Steps in Industry Analysis 3. Assess the underlying drivers of each competitive force to determine which forces are strong and which are weak and why; 4. Determine overall industry structure Why is the level of profitability what it is? Which are the controlling forces for profitability Are more profitable players better positioned in relation to the five forces 15
16 Steps in Industry Analysis 5. Analyze recent and likely future changes in each force positive and negative 6. Identify aspects of industry structure that might be influenced by competitors, by new entrants, or by your company 16
17 Exhibit 2.1 Layers of the business environment 17
18 Why Undertake Industry Analysis The purpose is to determine the attractiveness or unattractiveness of the industry And in particular the sources of the above by consideration of five key forces (Porter s five forces model, developed in 1979) Unlike factors considered in PEST analysis, a company CAN influence industry attractiveness 18
19 Industry Analysis Is the Industry Attractive? Yes No Can we increase this? Are we committed to this industry? Can we change this? 19
20 Porter 2008: Updated Version of The Five Forces In essence, the job of the strategist is to understand and cope with competition Remember this is the dominant view of strategy; Remember in week 1 we posed the question is this view still as applicable today 20
21 Common Mistake Competition is defined too narrowly Competition includes direct rivals But competition for profits demands considerations of four other competitive forces: These five forces combined define an industry s structure 21
22 Exhibit 2.2 The five forces framework Source: Adapted with the permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright 1980, 1998 by The Free Press. All rights reserved 22
23 Porter s Five Forces and Industry Analysis: His examples Industries with intense forces Airlines Hotels Textiles Industries with benign forces Software Soft drinks Toiletries 23
24 Industry Analysis Benign Forces Intense forces Many companies are profitable Almost no company earns an attractive ROI 24
25 Porter s Key Point is this: Industry structure determines profitability Not the nature of the product or service whether the industry is emerging or mature whether high-tech or low-tech whether regulated or unregulated 25
26 Industry Profitability Determined by In Short term A myriad of factors The weather (severe cold weather deters trips to shops) The business cycle (products at end of PLC vs new products think of Video Game Consoles) In Medium/Long Term Industry structure as manifested in the competitive forces 26
27 Why is it essential to understand the forces? 1. These reveal the roots of an industry s current profitability 2. They also provide a framework for anticipating and influencing competition (and profitability) over time 3. Essential for strategic positioning Need to defend against the competitive forces And to shape the forces to the company s advantage 27
28 Industry Analysis: Example 1: Commercial Aircraft Factor Intensity of Rivalry Buyer Power Supplier Power Threat of Substitute Products Threat of New Entrants Evaluation Strong Force (albeit only two key players Airbus and Boeing) Strong force (airlines placing huge orders eg. Singapore Airlines) Benign Benign (I would suggest that this has become a stronger force due to extension of journey time due to security concerns and technological advances in substitutes such as rapid trains) Benign 28
29 Key Point The strongest competitive force or forces determine the profitability of an industry and become the most important force for consideration in strategy formulation Porter, 2008, Harvard Business Review 29
30 Photographic Film Industry Low returns are due not so much to rivalry (i.e. between Kodak and Fuji) But due to the advent of a superior substitute product (i.e. digital photography) Hence coping with this substitute product emerges as the top or number one strategic priority 30
31 The Five Forces in-depth
32 FIRST FORCE: THREAT OF NEW ENTRANTS 32
33 Threat of Entry New entrants increase industry capacity and want to win market share This leads to pressure on prices, costs and the rate of investment required to compete New entrants that emerge from other markets can have a major impact as they can leverage existing capabilities and cash flows to shake up competition: 33
34 Threat of Entry: Recent Examples Google with Android in smart phones; Apple with ipad in ereader; Pepsico entering bottled water and other beverage segments; Amazon with Online entertainment 34
35 Threat of entry Is High Deters New Entrants Demands a response from incumbents Or boost investment (erect barriers) They must hold down their prices 35
36 What determines level of Threat of Entry? 1. The height of entry barriers (i.e. the advantages that incumbents have relative to new entrants) 2. The reaction new entrants provoke from incumbents 36
37 Nature of Barrier Barriers to Entry: Seven Major sources Comment/Explanation 1. Supply-side economies of scale Firms producing in large quantities enjoy economies of scale and so new entrants can only compete if they enter and they too are prepared to compete on scale, otherwise they suffer a cost disadvantage. Scale economy benefits arise in almost every activity of the value-chain. 2. Demand-side benefits of scale Basically, buyers willingness to buy from a company increases with the number of other buyers the company has. Buyers have higher trust in larger companies. 37
38 Nature of Barrier Barriers to Entry: Seven Major sources Comment/Explanation 3. Capital requirements The need to invest substantial financial resources in order to compete can deter new entrants; Where capital requirements are modest, many potential entrants exist; 4. Incumbency advantages independent of size However, lenders can be found to provide large sums of capital when risks are low and growth opportunities are strong. Regardless of size, incumbents may possess cost or quality advantages unavailable to potential rivals. Advantages may include proprietary technology; preferential access to raw materials; entrenched in most attractive locations; brand identities etc. 38
39 Nature of Barrier Barriers to Entry: Seven Major sources Comment/Explanation 5. Customer-switching costs Switching costs are fixed costs that buyers face when they change suppliers; 6. Unequal access to distribution channels The greater the switching costs, the higher the barrier to entry; A new entrant needs to secure distribution, so the more limited the choice of channels the greater the entry barrier. Similarly, the more that incumbents control or have tied up distribution channels, the greater the entry barrier. When such barriers are high, the new entrant must bypass distribution channels altogether or create their own. 39
40 Barriers to Entry: Seven Major sources Nature of Barrier 7. Restrictive Government Policy Comment/Explanation Government policy can impede or aid new entry directly; It can also exaggerate or minimize other entry barriers 40
41 Barriers to Entry: Seven Major sources and a practical perspective Nature of Barrier 1. Supply-side economies of scale 2. Demand-side benefits of scale 3. Capital requirements 4. Incumbency advantages independent of size 5. Customer-switching costs 6. Unequal access to distribution channels 7. Restrictive Government Policy Consider these Barriers to Entry for Developed Country Multinational Corporations (MNCs) and the China Market Now consider the extent of these barriers to companies such as Apple, Dell, Google, RIM (ie Blackberry in China) 41
42 Barriers to Entry: Seven Major sources and Google in China Nature of Barrier 1. Supply-side economies of scale High 2. Demand-side benefits of scale High 3. Capital requirements Low 4. Incumbency advantages independent of size High 5. Customer-switching costs High 6. Unequal access to distribution channels High 7. Restrictive Government Policy Very High Extent of Barrier Could Google possibly ever succeed in China? 42
43 Big Challenge in Emerging Markets You may be seduced by the opportunities, but often the barriers to entry are very high. Should a company enter a market where the barriers are so high that it is either peripheral or confined to being a niche player? 43
44 What determines level of Threat of Entry? 1. The height of entry barriers (i.e. the advantages that incumbents have relative to new entrants) 2. The reaction new entrants provoke from incumbents 44
45 Expected Retaliation by Incumbents Retaliation Strong Weak Reduces profit potential Deters new entrants Encourages new entrants 45
46 Reasons to Fear Retaliation Incumbents have a history of mounting strong defence against new entrants Incumbents have the resources to fight back: Cash Production capacity Clout with distribution channels and customers Incumbents will cut prices to protect market share and/or have high fixed costs Industry growth is slow so the only way for new entrants to gain volume is at the expense of an incumbent 46
47 1. Threat of New Entrants Vital to stress that it s the mere threat, not actual entry that holds down profitability When threat is high, incumbents need to hold down prices or boost investment to deter entrants Threat of entry is high and profits are moderated when entry barriers are low and newcomers expect little retaliation from incumbents 47
48 SECOND FORCE: THE POWER OF SUPPLIERS 48
49 2. Bargaining Power of Suppliers Supplier are more powerful when: They sell to an industry less concentrated than their own The supplier is not heavily dependent on the industry for its revenues Switching costs for industry participants are high Suppliers offer differentiated products No substitutes are available Suppliers could undertake forward integration 49
50 THIRD FORCE: THE POWER OF BUYERS 50
51 3. Bargaining Power of Buyers Powerful buyers can: force down prices; Demand better quality or more service (thus driving up costs); and can play industry participants off against each other These all result in a reduction of profitability for those catering to these buyers 51
52 Bargaining Power of Buyers is Strong when. There are few buyers; Or when each buyer purchases in volumes that are large relative to the size of a single vendor; Buyers perceive vendors products as standardized or lacking in differentiation, so they perceive no advantage in buying from a particular vendor; Buyers have low switching costs in changing vendors; Buyers can credibly threaten backward integration and produce the vendor s product themselves 52
53 Bargaining Power of Buyers is Weak when. There are many buyers; Or when each buyer purchases in volumes that are small relative to the size of a single vendor; Buyers perceive vendors products as differentiated, so they perceive no advantage in buying from a particular vendor; Buyers have high switching costs in changing vendors; Buyers cannot credibly threaten backward integration and produce the vendor s product themselves 53
54 Let s Sum Up the Previous Two Slides Factor Trait when Buyer Power is Strong Trait when Buyer Power is Weak Number of buyers Few Many Volume of purchase relative to size of single vendor Nature of Vendor s Product Large Standardized or lacking differentiation Small Buyers and switching costs Low Costs High Costs Threat of backward integration by vendor Strong Strong differentiation Weak 54
55 Spotting Price Sensitive Buyers A buyer group is price sensitive when: It buys a product from the industry that represents a high percentage of its cost structure E.g. imagine a company buys just one particular component that accounts for 30 per cent of its total cost structure the company will be very price sensitive and seek to lower cost of that component as much as possible 55
56 Spotting Price Sensitive Buyers A buyer group is price sensitive when: It earns low profits, is strapped for cash, or is under pressure to reduce purchasing costs; Its own products/services are not greatly affected by the quality of the vendors products/services E.g. let s assume that the ducting used in a Dyson hose is not critical to the quality of Dyson would be a very pricesensitive buyer of such ducting; However, the motor may be very important, so for that product Dyson would be much less price sensitive 56
57 Spotting Price Sensitive Buyers A buyer group is price sensitive when: The industry s product has little effect on the buyer s other costs E.g. an automobile producer may be very price sensitive when it comes to purchase of lights in vehicles, but not at all price-sensitive in choice of CNC machinery 57
58 Just Think of Yourself as a Consumer! When are you a price sensitive buyer? When you are buying products that lack differentiation; When you are buying products that are relatively expensive to you; When product performance is not a major concern 58
59 FOURTH FORCE: THE THREAT OF SUBSTITUTES 59
60 Substitute Products When the threat is high, industry profitability suffers The existence of substitute products/services limits an industry s profit potential by placing a ceiling on prices Therefore an industry needs to reduce the appeal of substitutes through product performance, marketing etc E.g. golf club companies seek to reduce appeal of previous generations of product by regular new product launches and claims of improved performance 60
61 Substitute Products In Emerging Markets, industries that may have expected to reap the benefits of economic development miss out due to substitute products Rather than subscribe to a wired telephone line, they rely exclusively upon wireless telecommunications 61
62 The threat from substitute products is high if. 1. it offers an attractive price-performance tradeoff to the industry s product Imagine paying $200 for a set of rarely used golf clubs that retailed for $1,200 only 12 months earlier; People use Skype and Vonage rather than conventional service providers for long-distance calls; TV cable companies in 2010 have seen largest drop in subscriber numbers as people rely on Online services such as Hulu, Netflix and YouTube. 62
63 The threat from substitute products is high if. 2. The buyer s cost of switching to the substitute is low Consumers may switch at minimal cost from branded products (e.g cereals, drugs) to generics 63
64 Substitute Products Changes in other industries may render them attractive substitutes when they were not before Consider some examples: Steel may be replaced by plastics as the latter innovates; Nuclear power may be replaced by renewable energy sources as the latter innovates 64
65 Threat of Substitute Products A substitute performs the same or similar function as an industry s product by a different means video conferencing is a substitute for travel; Plastic for aluminum for fax/letters Facebook for 65
66 Threat of Substitute Products Substitutes are always present though they can often easily be overlooked; Valentine s Day is approaching so think of the range of substitute products Think of what you may choose to buy for your partner that list of potential purchases are in fact all substitute products Consider your gift purchases at Christmas time the options that you faced in each purchase again highlights the nature of substitutes 66
67 It is a substitute to do without you may decide not to make a purchase (e.g. buy a car; book a vacation) buy used (so this can be a strong substitute for cars, sports equipment, books etc internet and ecommerce has perhaps increased the strength of this force) do it yourself (e.g. remodel yourself rather than employ a contractor; wash your own car rather than go to commercial carwash) 67
68 FIFTH FORCE: INTENSITY OF RIVALRY 68
69 Think of How Rivals Compete What do auto companies do in order to win sales? What do mobile phone service carriers do in order to win subscribers? What do retailers to in order to attract customers? 69
70 Rival s Means of Competing Auto Companies Fast Food Restaurants Mobile Phone Service Carriers Retailers Price Discounts on Original Purchase Price Low Maintenance Costs (eg Warranty) Advertising New Product Introductions Service Improvements Other 70
71 High Rivalry Limits The Profitability of the Industry Industry s Reduced Profitability determined by. Intensity of Rivalry Basis on which they compete 71
72 Intensity of Rivalry Greatest if.. Competitors are numerous, or are roughly equal in size and power Industry growth is slow Exit barriers are high Rivals are highly committed to the business and seek market leadership Implications of trend Rivals struggle to avoid poaching business from each other; In the absence of an industry leader, there is no enforcer of practices best suited to the industry Leads to fights for market share Companies cannot exit easily as their assets are highly-specialized; Often management have an emotional commitment to the industry and only its removal results in exit from the industry Often results in all competing on the same dimensions, and this damages prospects of profitability 72
73 Price Competition is most likely if Trend Products or services of rivals are nearly identical and few switching costs to buyers Fixed costs are high and marginal costs are low Capacity must be expanded in large increments to be efficient The product is perishable Comment This encourages rivals to cut prices to secure new customers Again intensifies pressure for rivals to cut costs below their average costs Can lead to excess capacity issues and price-cutting Intensifies pressure to cut prices whilst product has some value; Fruit may rot; electronics may become obsolete; services are perishable an unsold hotel room can never be recovered 73
74 Common Errors in Industry Analysis: Factors Not Forces Common Error Fast-growing industries are always attractive Technology and Innovation make an industry attractive Government Fast growth can make suppliers powerful; High growth with low entry barriers will draw in entrants; Even without new entrants, customers may be powerful or substitutes are attractive, reducing profitability opportunities. Often industries with low technology can be more profitable than technologyintensive industries (eg software) Can affect the forces, but is not a force per se 74
75 Intensity of Rivalry In addition to the dimensions of rivalry, intensity increases when firms compete on the same dimensions Firms aim to meet the same needs Or compete on the same attributes 75
76 The Five forces In an ideal world what would the analysis conclude for an organization competing in a particular industry? What would be the worst case scenario? Does the ideal scenario ever exist in a free market economy? 76
77 The Five Forces in Operation Let s identify an industry/industries and examine it using the five forces model Often students are confused by this tool They talk of substitutes when they mean rivals They are not clear on who the suppliers are Or do not distinguish between different types of buyers 77
78 Porter s Five Forces Model It is vital that you grasp this concept and can apply it any context It needs to be applied at the SBU level of the organization It reveals the nature of competition in the present, but also needs to be employed to consider the nature of each force in the future This future orientation allows the organization to develop strategies to deal with each force in the future Changes in the remote environment can exert enormous impact upon the nature of a particular force 78
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 informationA 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 informationA 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 informationTHE AMERICAN AIRLINEW INDUSTRY AND SOUTHWEST AIRLINES. low profit margins. Within the industry, however, there have been differences in terms of
THE AMERICAN AIRLINEW INDUSTRY AND SOUTHWEST AIRLINES Introduction The domestic airline industry in the USA has been characterized by intense rivalry and low profit margins. Within the industry, however,
More informationAnalyze 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 informationTHE 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 informationMasters in Engineering and Management of Technology Masters in engineering Design Introduction to Entrepreneurship and New Venture Creation
Masters in Engineering and Management of Technology Masters in engineering Design Introduction to Entrepreneurship and New Venture Creation Rui Baptista The Structural Analysis of Industries What is Strategy?
More informationNetflix Strategic Analysis
XMBA 2013 Netflix Strategic Analysis Global Strategic Thinking Joey M. Reed, XMBA 2013 4/17/2013 EXECUTIVE SUMMARY In 1999, Reed Hastings launched an online movie rental service called, Netflix. The company
More informationStrategic Elements of Competitive Advantage. PPT 6 (First ppt slides after the mid-term) Assist. Prof. Dr. Ayşen Akyüz
Strategic Elements of Competitive Advantage PPT 6 (First ppt slides after the mid-term) Assist. Prof. Dr. Ayşen Akyüz Industry Analysis: Forces Influencing Competition Industry group of firms that produce
More informationShaping. 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 informationIndustry Analysis: The Fundamentals
Industry Analysis: The Fundamentals OUTLINE The objectives of industry analysis From environmental analysis to industry analysis Porter s Five Forces Framework Applying industry analysis Industry & market
More informationEconomics Chapter 7 Review
Name: Class: Date: ID: A Economics Chapter 7 Review Matching a. perfect competition e. imperfect competition b. efficiency f. price and output c. start-up costs g. technological barrier d. commodity h.
More informationCHAPTER 8 ECONOMICS OF STRATEGY: CREATING AND CAPTURING VALUE CHAPTER SUMMARY
CHAPTER 8 ECONOMICS OF STRATEGY: CREATING AND CAPTURING VALUE CHAPTER SUMMARY This chapter is the first of two chapters on strategy. It concentrates on the basic ways firms can create and capture value.
More informationChapter 2 Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners from Losers
Chapter 2 Strategy and Technology: Concepts and Frameworks for Understanding What Separates Winners from Losers 2-1 The Danger of Relying on Technology Firms strive for sustainable competitive advantage,
More informationThe Real Estate Philosopher Porter s Five Forces in the Real Estate World
The Real Estate Philosopher Porter s Five Forces in the Real Estate World Michael Porter is a professor at Harvard Business School. He has spent his long career analyzing strategy and competition. His
More informationA Framework for Competitive Advantage in etourism
A Framework for Competitive Advantage in etourism Markus Gratzer a, Werner Winiwarter b a E-Commerce Competence Center EC3 Donau City Straße 1, 1220 Vienna, Austria markus.gratzer@ec3.at b Institute for
More information1Industry Structures
1Industry Structures 17 In this and following chapters I turn away from a consideration of the economy as a whole and the split between the core and periphery to focus on competition within individual
More informationA 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 informationBUS 478-D200. Case Synopsis: Microsoft. Prepared by Group E:
BUS 478-D200 Case Synopsis: Microsoft Prepared by Group E: Piero Bi 301088927 Bella Xiao 301103166 Wendy Shi 301083155 Ruobing Gan 301110709 Joanna Chen 301145515 Date: Nov. 19 th, 2012 HISTORY Microsoft
More informationINDUSTRY 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 informationGoogle should target small enterprises, Google fans, travelers and foreign markets.
Date: Wednesday, March 11, 2009 Subject: Google Phone Positioning Strategy To: Eric Schmidt From: Albert Ko, Dane Rukavina, Justin Ng Introduction. The Google Phone is a relatively new type of product
More informationPORTER 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 informationSegmentation. Stages in Segmentation Analysis
Segmentation Conventionally, industries are defined broadly; the automobile industry, the computer software industry, the shipping industry. But competition tends to occur at more localised levels - within
More informationCoca-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 informationAchieving 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 informationBrochure More information from http://www.researchandmarkets.com/reports/3197610/
Brochure More information from http://www.researchandmarkets.com/reports/3197610/ Global Mobile Security Market (Solution, Types, OS, End Users and Geography) - Size, Share, Global Trends, Company Profiles,
More informationTHEME 7: STRATEGIC DIAGNOSIS
THEME 7: STRATEGIC DIAGNOSIS SWOT analysis. Portfolio management. BCG matrix. Sallenave matrixes. GE-McKinsey matrix. Alfonso VARGAS SÁNCHEZ 1 STRATEGIC MANAGEMENT 1.-WHERE AM I NOW? 3.-WHAT DO I NEED
More informationRELEVANT TO FOUNDATION LEVEL PAPER FAB / ACCA QUALIFICATION PAPER F1
RELEVANT TO FOUNDATION LEVEL PAPER FAB / ACCA QUALIFICATION PAPER F1 The role of marketing Section B2(e) of the Paper FAB Study Guide states that candidates should be able to describe the roles and functions
More informationAvailability 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 informationMODULE TITLE: Exploring Strategy
SCHOOL OF ARTS, SOCIAL SCIENCES AND MANAGEMENT DIVISION OF BUSINESS, ENTERPRISE AND MANAGEMENT LEVEL 3 DIET 2 MODULE CODE: B3132 MODULE TITLE: Exploring Strategy DATE: 29 July 2013 WRITING TIME: 2 Hours
More informationOn Customer Experience
On Customer Experience Benefits. Best Practices. Truth. Storyminers, Inc. All rights Reserved. 770.425.9830 mike@mikewittenstein.com On Customer Experience There s certainly nothing new about focusing
More informationCase 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 informationEcon 101: Principles of Microeconomics
Econ 101: Principles of Microeconomics Chapter 16 - Monopolistic Competition and Product Differentiation Fall 2010 Herriges (ISU) Ch. 16 Monopolistic Competition Fall 2010 1 / 18 Outline 1 What is Monopolistic
More informationHow To Increase Car Insurance Prices On A Price Comparison Website
Response by Moneysupermarket.com Limited to the Competition Commission Private Motor Insurance Market Investigation Statement of Issues Introduction 1. Moneysupermarket.com Limited ( MS ) is an independent
More informationInformation 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 informationMKTG 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 informationTHE 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 informationGfK 2016 Tech Trends 2016
1 Contents 1 2 3 Evolving behavior today s connected consumers Driving you forward 10 tech trends for 2016 Growth from knowledge turning research into smart business decisions 2 Evolving behavior today
More informationProduct Development: - Loan pricing
Product Development: - Loan pricing October 2008 Peter Njuguna Deputy Program Director WOCCU SACCO Cap Project Nairobi, Kenya Course objectives Identify the two ways a SACCO can charge for loans. Recognize
More informationBASES 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 informationCompetitive analysis of the fruit processing industry in Nepal, Vietnam, India, Sri Lanka and Bangladesh Using Porter s Five Forces Model
Competitive analysis of the fruit processing industry in Nepal, Vietnam, India, Sri Lanka and Bangladesh Using Porter s Five Forces Model For an ICUC (International Centre for Underutilised Crops) Project
More informationCustomer 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 informationChange Management- A Challenge in Supply Chain Management
Global Journal of Management and Business Studies. ISSN 2248-9878 Volume 3, Number 5 (2013), pp. 549-554 Research India Publications http://www.ripublication.com/gjmbs.htm Change Management- A Challenge
More informationHow to audit your business strategy
How to audit your business strategy Andrew Carey Why conduct a business strategy audit? Nearly all the major initiatives undertaken by corporate executives today are called strategic. With everything having
More informationWhat is th of your St
What is th of your St 18 Fall 2011 A Middle East Point of View Strategy e color rategy? A new dimension Over the past few decades, most strategists and corporate executives have been using a global classification
More informationIDG Ventures Vietnam Guide to Writing a Business Plan
IDG Ventures Vietnam Guide to Writing a Business Plan Initial Phase: Formulating the Idea You have a great idea for a company now is the time to do your homework. Before writing a business plan, extensive
More informationCreating a supply chain control tower in the high-tech industry
Creating a supply chain control tower in the high-tech industry Creating a supply chain control tower in the high-tech industry A supply chain control tower gives high-tech leaders the ability to create
More informationMarketing Management
Marketing Management Theocharis Katranis Fall Semester 2014 1 Today s Lecture 1. We will discuss the competitive forces in a market 2. We will identify and analyse competitors 3. We will elaborate different
More informationThe 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 informationMBA StratMan Analyse the Environment. Dr. Vesselin Blagoev
MBA StratMan Analyse the Environment Dr. Vesselin Blagoev Diagnosing the strategic position (Strategic Analysis) Environment Analysing the environment Capability Purpose Culture Source: Johnson, Scholes
More informationBusiness Ideas Streetcar
Student Self-administered case study Business Ideas Streetcar Case duration (Min): > 60 Principles of Management (PoM) Managing Small Business Start Ups Worldwide Case summary: Explores how ideas may be
More informationE-retailing Project. E-retailing - An Exciting Opportunity for the Logistics Sector
E-retailing Project E-retailing - An Exciting Opportunity for the Logistics Sector May 2012 Goodman E retailing Research Report About Transport Intelligence Headquartered in the UK, Ti is one of the world
More informationMarketing strategy questionnaire
Marketing strategy questionnaire Prepared by: Date: Purpose Use this template to capture the key information that you need to develop a thorough marketing strategy. Then use the information that you collect,
More informationThe 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 informationThe Future of E- commerce. Done By: Kenny Ong
The Future of E- commerce 1 Done By: Kenny Ong Agenda: 1. Introduction 2. Industry Analysis 3. Forecasts 4. Implications 5. Emerging Tech 6. Conclusion 2 Introduction 3 Value Chain Analysis - Disintermediation
More informationChapter 7 Monopoly, Oligopoly and Strategy
Chapter 7 Monopoly, Oligopoly and Strategy After reading Chapter 7, MONOPOLY, OLIGOPOLY AND STRATEGY, you should be able to: Define the characteristics of Monopoly and Oligopoly, and explain why the are
More informationPortfolio Management
Portfolio Management Portfolio Management It is top management responsibility that requires the assessment of strengths and weaknesses of the current portfolio of businesses, in order to define the priorities
More informationBusiness Model Generation Project Cinema and Movie Theater Subscription Service
Business Model Generation Project Cinema and Movie Theater Subscription Service This document presents a business model for the cinema and movie theater industry based on the nine key building blocks for
More informationChapter 2 Market Structure, Types and Segmentation
Market Structure There are a variety of differing market structures which are separated by the levels of competition that exist within each market and the market conditions in which the businesses operate.
More informationStrategic analysis. Activity 35.1 (page 619): Strategic analysis of LVM Ltd
35 Strategic analysis A Activity 35.1 (page 619): Strategic analysis of LVM Ltd 1 Prepare a SWOT analysis based on your assessment of the internal and external factors that influence LVM s success. [10]
More informationCompetitive Strategy in Game Consoles
Competitive Strategy in Game Consoles Jay Conrod, Klimka Szwaykowska; Mar 7, 2007 The interactive entertainment industry has grown remarkably quickly in recent years. Since 2001, the market has been dominated
More informationApplication 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 informationEdwards 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 informationDesign as a strategic resource: mapping design to the value chain and other strategy models. John Stevens, Centre for Technology Management May 2007
Design as a strategic resource: mapping design to the value chain and other strategy models John Stevens, Centre for Technology Management May 2007 Overview Design is increasingly recognised as strategically
More informationJ.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 informationUnderstand how PPC can help you achieve your marketing objectives at every stage of the sales funnel.
1 Understand how PPC can help you achieve your marketing objectives at every stage of the sales funnel. 2 WHO IS THIS GUIDE FOR? This guide is written for marketers who want to get more from their digital
More informationNYU/Stern Executive MBA Program COR1-GB.2310.86: Marketing Fall, 2015
Course Objectives NYU/Stern Executive MBA Program COR1-GB.2310.86: Marketing Fall, 2015 Professor Priya Raghubir Office: Tisch 806; Phone: 212.998.0727; Fax: 212.995.4006 e-mail: raghubir@stern.nyu.edu;
More informationCONSUMER ENGAGEMENT IN THE CURRENT ACCOUNT MARKET
CONSUMER ENGAGEMENT IN THE CURRENT ACCOUNT MARKET Why people don t switch current accounts March 2016 A Bacs Research Paper 1 FOREWORD Since 2013 Bacs has operated the Current Account Switch Service (CASS)
More informationUses and Limitations of Ratio Analysis
Uses and Limitations of Ratio Analysis Balkrishna Parab ACS, AICWA balkrishnaparab@jbims.edu F inancial statement analysis involves comparing the firm s performance with that of other firms in the same
More informationExecutive Cover Memo. The Allround brand is in a favorable position, but the cold medicine is also becoming a
Executive Cover Memo The Allround brand is in a favorable position, but the cold medicine is also becoming a cash cow. I believe that Allround needs to increase its unit sales with both grocery stores
More informationMERGER GUIDELINES COMPETITION COMMISSION OF PAKISTAN
MERGER GUIDELINES COMPETITION COMMISSION OF PAKISTAN I. INTRODUCTION... 2 II. OVERVIEW... 3 III. MARKET SHARE AND CONCENTRATION LEVELS... 4 1. Market share levels... 6 2. HHI levels... 6 IV. POSSIBLE ANTI-COMPETITIVE
More informationGUIDELINES FOR WRITING A VIABLE BUSINESS PLAN
GUIDELINES FOR WRITING A VIABLE BUSINESS PLAN The Franklin Business Incubator 600 N. Mechanic Street, Suite 301 Franklin, VA 23851 757-562-1958 info@franklinsouthamptonva.com 1 EXECUTIVE SUMMARY Your executive
More information'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 informationHadoop Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2012 2018
Transparency Market Research Hadoop Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2012 2018 Buy Now Request Sample Published Date: July 2013 Single User License: US $ 4595
More information(Relevant to Paper II -- PBE Management Accounting and Finance)
analysis and accounting (Relevant to Paper II -- PBE Management Accounting and Finance) Dr Fong Chun Cheong, Steve School of Business, Macao Polytechnic Institute Every day we see competition in products
More informationCase Study: (Robert M. Grant) Client: SEGA
Strategic Management Case Study: Rivalry in Video Games (Robert M. Grant) Client: SEGA Strategic Management MBA-Entrepreneurial Management Berlin School of Economics (FHW) Lecturer/assessor: David Palmer
More informationNine Things You Must Know Before Buying Custom Fit Clubs
Nine Things You Must Know Before Buying Custom Fit Clubs Exclusive insider information on the Custom Fit Industry 2 Introduction If you are in the market for new custom fit clubs here are some things you
More informationWireless Telecommunication Industry Overview
Wireless Telecommunication Industry Overview Columbia Graduate Consulting Club February 13, 2012 Pablo Prieto-Muñoz COLUMBIA UNIVERSITY Civil Engineering and Engineering Mechanics Global mobile phone subscribers
More informationAlexander 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 informationPorter s Five Forces. Strategy Skills. Team FME. www.free-management-ebooks.com ISBN 978-1-62620-999-2
Strategy Skills Team FME www.free-management-ebooks.com ISBN 978-1-62620-999-2 Copyright Notice www.free-management-ebooks.com 2013. All Rights Reserved ISBN 978-1-62620-999-2 The material contained within
More informationHow 4K UHDTV, 3G/1080p and 1080i Will Shape the Future of Sports Television Production How the production formats of today will migrate to the future
How 4K UHDTV, 3G/1080p and 1080i Will Shape the Future of Sports Television Production How the production formats of today will migrate to the future Original research from Josh Gordon Group sponsored
More informationIntroduction... 1 Website Development... 4 Content... 7 Tools and Tracking... 19 Distribution... 20 What to Expect... 26 Next Step...
Contents Introduction... 1 Website Development... 4 Content... 7 Tools and Tracking... 19 Distribution... 20 What to Expect... 26 Next Step... 27 Introduction Your goal is to generate leads that you can
More informationGillespie: Foundations of Economics - Additional chapter on Business Strategy
Gillespie: Foundations of Economics - Additional chapter on Business Strategy Table of Contents A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. P. Business and strategy Business as a transformation process
More informationChapter 6 Competitive Markets
Chapter 6 Competitive Markets After reading Chapter 6, COMPETITIVE MARKETS, you should be able to: List and explain the characteristics of Perfect Competition and Monopolistic Competition Explain why a
More informationStrategic Choices and Key Success Factors for Law Firms June, 2010. Alan Hodgart
Strategic Choices and Key Success Factors for Law Firms June, 2010 Alan Hodgart The Association of Danish Law Firms 1 Huron Consulting Group Inc. All rights reserved. Huron is a management consulting firm
More informationGredler / Moravska / Wegendt. Case 17. Microsoft X-Box Live!
Gredler / Moravska / Wegendt Case 17 Microsoft X-Box Live! 1 A. Basic facts Table of Content 1. Microsoft 2. Video Gaming Indurstry 3. Competitors + 5 year life cycle 4. Xbox (Xbox 360 + Xbox Live!) B.
More informationUNDERSTANDING PRICING
UNDERSTANDING PRICING Price is not just a number on a tag or an item. A) Throughout most of history prices were set by negotiation between buyers and sellers. B) Setting one price for all buyers is a relatively
More informationThe Psychology of Travel Consumer Behavior
The Psychology of Travel Consumer Behavior January 2003 The Strategic Travel Action Resource or STAR is a timely, topical, brief report replacing what was currently referred to as an Industry Report. The
More informationCOMPARATIVE REASEARCH ON THE MARKETING STRATEGIES OF TELECOMMUNICATION INDUSTRY IN CHINA AND INDIA
COMPARATIVE REASEARCH ON THE MARKETING STRATEGIES OF TELECOMMUNICATION INDUSTRY IN CHINA AND INDIA Chengchang Wang, Abhinav Kishore School of Business Administration, Wuhan University of Technology, Wuhan,
More informationGillette: The Best Anyone Can Get
Team 2 Marketing 8030 Summer 2014 1 Executive Summary Gillette is a multi-billion dollar company focused on personal grooming products founded by King Gillette in 1901. Now part of the Procter and Gamble
More informationAlternative Payment and Distribution Landscape: Airline Distribution Channels
Alternative Payment and Distribution Landscape: Airline Distribution Channels Contents Introduction 04 At a glance 05 Setting the scene 06 Mobile payments 08 The challenges of mobile 10 The social media
More informationSirius XM Radio Inc. COMPANY PROFILE
COMPANY PROFILE Sirius XM Radio Inc. REFERENCE CODE: 787AC6F2-4390-407B-9275-22C140208C81 PUBLICATION DATE: 9 Nov 2012 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS
More information100 Ways To Improve Your Sales Success. Some Great Tips To Boost Your Sales
100 Ways To Improve Your Sales Success Some Great Tips To Boost Your Sales 100 Ways To Improve Your Sales Success By Sean Mcpheat, Managing Director Of The Sales Training Consultancy What makes a successful
More informationcompetitive advantage marketspace market creator e-commerce business model sales revenue model subscription revenue model advertising revenue model
achieved by a firm when it can produce a superior produce and/or bring the product to market at a lower price than most, or all, of its competitors. competitive advantage the area of actual or potential
More informationFundamentals of Information Systems, Seventh Edition
Chapter 1 An Introduction to Information Systems in Organizations 1 Principles and Learning Objectives The value of information is directly linked to how it helps decision makers achieve the organization
More informationIntro: Increase your Financial IQ Get Smarter with Your Money - Written by Robert Kiyosaki
Intro: Increase your Financial IQ Get Smarter with Your Money - Written by Robert Kiyosaki As you may know, I am a big fan of Robert Kiyosaki. He knows what he is doing when it comes to financial education
More informationCHAPTER 4. Standards Battles and Design Dominance
CHAPTER 4 Standards Battles and Design Dominance SYNOPSIS OF CHAPTER The focus of this chapter is on identifying the reasons why most industries adopt a dominant design and why a particular firms technology
More informationSocial Media for B2B: A Beginner s Guide
COMMUNITY EBOOK / JULY 2012 / WWW.RADIAN6.COM / 1 888 6radian Social Media for B2B: A Beginner s Guide Copyright 2012 - Radian6 Technologies 1 888 6RADIAN 1 888 672-3426 / community@radian6.com Copyright
More information1660 Logan Ave. #A, San Diego, CA 92113 Tel: (858) 454-5900 x10804. www.myrateplan.com
Background Getting the best value from everyday household services (wireless, long distance, Internet access, credit cards, etc.) is, at best, a difficult task. Most consumers do not have the time, expertise
More information