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Ch2-1
Sociocultural
Industry
Environment
Competitive
Environment
Political/
Legal
Global
Technological
Ch2-2
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Ch2-3
Ch2-4
Ch2-5
Opportunities
An OPPORTUNITY is a chance for firm
growth or progress due to a favorable
juncture of circumstances in the
business environment.
Possible Opportunities:
Emerging customer needs
Quality Improvements
Expanding global markets
Vertical Integration
Ch2-6
Threats
A THREAT is a factor in your companys
external environment that poses a
danger to its well-being.
Possible Threats:
New entry by competitors
Changing demographics/shifting demand
Emergence of cheaper technologies
Regulatory requirements
Ch2-7
The purpose of
Five-Forces Analysis
The five forces are environmental
forces that impact on a companys
ability to compete in a given market.
The purpose of five-forces analysis is to
diagnose the principal competitive
pressures in a market and assess how
strong and important each one is.
Ch2-9
Ch2-10
Product Differentiation
Capital Requirements
Switching Costs
Access to Distribution Channels
Cost Disadvantages Independent
of Scale
Government Policy
Expected Retaliation
Ch2-11
Ch2-12
Ch2-13
Bargaining
Power of
Suppliers
Bargaining
Power of
Buyers
Ch2-14
Buyers compete
with the supplying
industry by:
* Bargaining down prices
* Forcing higher quality
Bargaining
Power of
Suppliers
Bargaining
Power of
Buyers
Threat of
Substitute
Products
Ch2-16
Rivalry Among
Competing Firms
in Industry
Bargaining
Power of
Buyers
Threat of
Substitute
Products
Ch2-18
Ch2-21
Competitor Analysis
The follow-up to Industry Analysis is
effective analysis of a firms Competitors
Industry
Environment
Competitive
Environment
Ch2-22
Competitor Analysis
Assumptions
What assumptions do our
competitors hold about the future
of industry and themselves?
Current Strategy
Does our current strategy support
changes in the competitive
environment?
Future Objectives
How do our goals compare to our
competitors goals?
Capabilities
How do our capabilities compare
to our competitors?
Response
What will our
competitors do in the
future?
Where do we have a
competitive
advantage?
How will this change
our relationship with
our competition?
Ch2-23
Competitor Analysis
Future Objectives
How do our goals
compare to our
competitors
Where
will emphasis
goals? be
placed in the future?
What is the attitude
toward risk?
Ch2-24
Competitor Analysis
Future Objectives
How do our goals
compare to our
competitors
Where
will emphasis
goals?Strategy
be
Current
placed inHow
the future?
are we currently
What is the
attitude
competing?
toward risk?
Does this strategy
support changes in the
competitive structure?
Ch2-25
Competitor Analysis
Future Objectives
Ch2-26
Competitor Analysis
Future Objectives
Ch2-27
Competitor Analysis
Response
Future Objectives
How do our goals
compare to our
competitors
Where
will emphasis
goals? Strategy
be
Current
placed in the future?
How are we currently
What is the
attitude
competing?
Assumptions
toward risk?
Does this
Dostrategy
we assume the future
supportwill
changes
in the
be volatile?
competition
Whatstructure?
assumptions do our
competitors
Capabilities
hold about the
industry and themselves?
What are my competitors
Are we operating
strengths under
and weaknesses?
a status quo?
How do our capabilities
compare to our
competitors?
Ch2-28