SGMT 3000 Chapter Notes - Chapter 2: Price Fixing, Life-Cycle Assessment, Oligopoly

• School: York University
• Department: Strategic Management
• Course: SGMT 3000
• Professor: T B A

Document Summary

Substitutes: goods or services that satisfy the same basic customer needs. Rivals: those companies that serve the same basic customer needs; those companies which sell substitute items. Chapter 2 external analysis, the identification of opportunities & threats. Opportunities: elements and conditions in a company"s environment that allow it to formulate and implement strategies that enable it to become more profitable. Threats: elements in the external environment that could endanger the integrity and profitability of the company"s business. Company must either fit strategy to external environment or be able to reshape the environment to its advantage. Industry: group of firms offering goods or services that serve as close substitutes for each other. Identifying the industry: managers start by looking at the basic customer needs their companies tries to serve; customer-oriented view instead of a product-oriented view; industry is supply side of market, customers are demand.