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STRATEGIC  ANALYSIS
Analyzing  a  Company’s  External  Environment
“ Things are always different--the art is figuring out which differences matter.”
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Situation  Analysis?
 
Components  of  Macro-Environment
Key  Questions  Regarding  the Industry  and  Competitive  Environment Industry’s dominant economic traits  Competitive forces and strength of each force Drivers of change in the industry Competitor analysis Key success factors Conclusions: Industry attractiveness
Key  Aspects of Industry  Attractiveness ,[object Object],[object Object],[object Object],[object Object],[object Object]
Some Definitions ,[object Object],[object Object],[object Object],[object Object]
Some Definitions(cont’d) ,[object Object],[object Object],[object Object],[object Object]
The Computer Sector: Industries and Segments
#1.Industry’s  Dominant  Economic  Traits? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],#2: Competitive  Forces  Faced by Firms?
Porter’s Five Forces Model
5-Forces I. Rivalry  Among  Competing  Sellers ,[object Object],[object Object],[object Object],[object Object]
Typical   Weapons  for  Competing? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What  Causes  Rivalry to  be  Stronger? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
5- Forces II. Threat of  Potential  Entry ,[object Object],[object Object],[object Object],[object Object]
Common  Barriers  to  Entry ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Expected Retaliation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Learning/Experience  Effects ,[object Object],[object Object],[object Object],[object Object]
When  Is  the  Threat of  Entry  Stronger? ,[object Object],[object Object],[object Object],[object Object],[object Object]
When  Is  the  Threat of  Entry  Weaker? ,[object Object],[object Object],[object Object],[object Object],[object Object]
5 – Forces III. Threat of Substitute  Products What is a substitute product? Other products (outside the industry) that can perform the same  function(s)  as the product of the industry
Substitute  Products ,[object Object],[object Object],[object Object],Examples
[object Object],[object Object],[object Object],How  to  Tell  Whether  Substitute Products  Are  a  Strong  Force
When  Is  the  Competition  From  Substitutes  Stronger? ,[object Object],[object Object],[object Object],[object Object]
5 – Forces IV.  Supplier is powerful when…. ,[object Object],[object Object],[object Object],[object Object],[object Object]
Bargaining Power of Suppliers ,[object Object],[object Object],[object Object]
When  Is  the  Bargaining  Power  of  Suppliers  Stronger? ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],When  Is  the  Bargaining  Power  of  Suppliers  Weaker?
Competitive  Pressures:  Collaboration  Between  Sellers  and  Suppliers ,[object Object],[object Object],[object Object],[object Object],[object Object]
5 – Forces V. Bargaining power of Buyers ,[object Object],[object Object],[object Object]
When  Is  the  Bargaining Power  of  Buyers  Stronger? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
When  Is  the  Bargaining Power  of  Buyers  Weaker? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Competitive  Pressures:  Collaboration  Between  Sellers  and  Buyers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Strategic  Implications  of  the Five  Competitive  Forces ,[object Object],[object Object],[object Object],[object Object],[object Object]
Managing  Competitive  Forces ,[object Object],[object Object],[object Object],[object Object]
#3: Factors  Driving  Industry  Change  and  their  Impacts ,[object Object],[object Object]
Analyzing  Driving  Forces ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Some  typical Driving  Forces ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Some  (more)   typical Driving  Forces
Strategic Group mapping ,[object Object]
Strategic  Group  Mapping ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Interpreting  Strategic Group  Maps ,[object Object],[object Object],[object Object]
Likely Strategic  Moves of Rivals ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
4# Competitor  Analysis ,[object Object],[object Object],[object Object],[object Object]
Considerations  Involved  in Predicting  Moves  of  Rivals ,[object Object],[object Object],[object Object],[object Object],[object Object]
#5: Key Success Factors ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
KSFs – Technology related ,[object Object],[object Object]
KSFs – Manufacturing related ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
KSFs – Distribution related ,[object Object],[object Object],[object Object]
KSFs – Marketing related ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Identifying  Industry Key  Success  Factors ,[object Object],[object Object],[object Object],[object Object],[object Object]
Example:  KSFs  for Beer  Industry ,[object Object],[object Object],[object Object]
Example:  KSFs  for  Apparel  Manufacturing  Industry ,[object Object],[object Object]
Example:  KSFs  for  Tin  and Aluminum  Can  Industry ,[object Object],[object Object]
#6:  Industry Attractiveness ? ,[object Object],[object Object],[object Object],[object Object]
Factors  to  Consider  in Assessing  Industry  Attractiveness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Core  Concept:  Assessing  Industry  Attractiveness The  degree  to which an  industry  is  attractive  or  unattractive  is often not the same for all industry participants or potential entrants. The  opportunities  an industry presents  depend  partly on a company’s ability  to  capture  them.
INTERNAL ANALYSIS Analyzing  Company’s  Resources  &  Competitive  Position
“ Before executives can chart a new strategy, they must reach common understanding of the company’s current position.”
Company  Situation  Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
#1:  How  Well  Is  the  Company’s Present  Strategy  Working? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Approaches  to  Assess  How  Well  the  Present  Strategy  Is  Working ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Key  Indicators  of  How  Well the  Strategy  Is  Working ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],#2: Strengths,  Weaknesses,  Opportunities  and  Threats ?  S W O T
Identifying  Resource  Strengths and  Competitive  Capabilities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Competencies  vs.  Core  Competencies  vs.  Distinctive  Competencies ,[object Object],[object Object],[object Object]
Company  Competencies and  Capabilities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Core  Competencies  --  A Valuable  Company  Resource
Examples:  Core  Competencies ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Distinctive  Competence  --  A Competitively  Superior  Resource ,[object Object],[object Object],[object Object],[object Object],[object Object],# 1
Examples:  Distinctive  Competencies  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],Determining  the  Competitive Value  of  a  Company  Resource
[object Object],[object Object],[object Object],[object Object],[object Object],Identifying  Resource  Weaknesses and  Competitive  Deficiencies
[object Object],[object Object],[object Object],[object Object],Identifying  a  Company’s Market  Opportunities
Identifying  External  Threats ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Role  of  SWOT  Analysis  in Crafting  a  Better  Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
#4:  Are Company’s Prices  & Costs  Competitive? ,[object Object],[object Object],[object Object],[object Object]
The  Concept  of  a Company  Value  Chain ,[object Object],[object Object],[object Object],[object Object],[object Object]
Company  Value  Chain
Characteristics  of  Value  Chain  Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Why  Do  Value Chains  of  Rivals  Differ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The  Value  Chain  System for  an  Entire  Industry  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example:  Value  Chain  Activities ,[object Object],[object Object],[object Object],[object Object],[object Object],Pulp  &  Paper  Industry
[object Object],[object Object],[object Object],[object Object],Example:  Value  Chain  Activities Home  Appliance  Industry
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Example:  Value  Chain  Activities Soft  Drink  Industry Albertson’s
[object Object],[object Object],[object Object],[object Object],Example:  Value  Chain  Activities Software  Computer  Industry
Developing  Data  to  Measure  a  Company’s  Cost  Competitiveness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Activity-Based  Costing:  A  Key Tool  in  Analyzing  Costs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Benchmarking  Costs  of Key  Value  Chain  Activities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Objectives  of  Benchmarking ,[object Object],[object Object],[object Object],[object Object]
What  Determines  if  a Company  Is  Cost  Competitive? ,[object Object],[object Object],[object Object],[object Object],[object Object],Activities,  Costs, & Margins of Forward Channel Allies Internally Performed Activities,  Costs, & Margins Activities,  Costs, & Margins of Suppliers Buyer/User Value Chains
Options  to  Correct Internal  Cost  Disadvantages ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Translating  Performance  of  Value  Chain  Activities  to  Competitive  Advantage ,[object Object],[object Object],[object Object],[object Object],[object Object]
#4: Company  Stronger  or  Weaker  than  Key  Rivals? ,[object Object],[object Object],[object Object]
Why  Do  a  Competitive Strength  Assessment ? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Identifying  the  Strategic  Issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Topic2 Str Analysis

  • 2. Analyzing a Company’s External Environment
  • 3. “ Things are always different--the art is figuring out which differences matter.”
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  • 6. Components of Macro-Environment
  • 7. Key Questions Regarding the Industry and Competitive Environment Industry’s dominant economic traits Competitive forces and strength of each force Drivers of change in the industry Competitor analysis Key success factors Conclusions: Industry attractiveness
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  • 11. The Computer Sector: Industries and Segments
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  • 24. 5 – Forces III. Threat of Substitute Products What is a substitute product? Other products (outside the industry) that can perform the same function(s) as the product of the industry
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  • 60. Core Concept: Assessing Industry Attractiveness The degree to which an industry is attractive or unattractive is often not the same for all industry participants or potential entrants. The opportunities an industry presents depend partly on a company’s ability to capture them.
  • 61. INTERNAL ANALYSIS Analyzing Company’s Resources & Competitive Position
  • 62. “ Before executives can chart a new strategy, they must reach common understanding of the company’s current position.”
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  • 82. Company Value Chain
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