BUS 800 Chapter Notes - Chapter 3: Competitor Analysis, Experience Curve Effects, Switching Barriers
Document Summary
Factors in the macro-environment: macro environment broad environmental context in which a company"s industry is situated o. Each component has potential affect firms immediate industry and competitive environment. Determine which represent most strategically relevant factors outside industry boundaries o. Important enough to have bearing on decisions about long term direction, objections, strategy, business model. Scan external environment alert for potential importance of outer ring developments. Promotes understanding strategic moves that industry members are likely to employee. Five force model of competition: competition from rival sellers, competition from potential new entrants to industry, competition from producers of substitute products, supplier bargaining power, customer bargaining power. Use to determine nature and strength of competitive pressures in given industry. Identify different parties involved specific factors that bring competitive pressures. Evaluate how strong pressures stemming from each of five forces: determine whether strengths overall conductive to earning attractive profits in industry. Increases when buyer demand is growing slowly or declining.
