1.CHAPTER 3 Show
2.THIS CHAPTER WILL HELP YOU UNDERSTAND: 3.FIGURE 3.1 4.CORE CONCEPT 5.CORE CONCEPT 6. THE STRATEGICALLY RELEVANT FACTORS IN THE COMPANY'S MACRO-ENVIRONMENTPESTEL Analysis 7.FIGURE 3.2 8.(c) 2016 by McGraw-Hill Education. This is
proprietary material solely for authorized instructor use. Not authorized for sale or distribution 9.(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized
for sale or distribution 10. ASSESSING A COMPANY’S INDUSTRY AND COMPETITIVE ENVIRONMENT1. How strong are the industry’s competitive forces? 11. THE FIVE FORCES FRAMEWORKThe Five Competitive Forces: 12.FIGURE 3.3 13. USING THE FIVE-FORCES MODEL OF COMPETITIONStep 1 14. COMPETITIVE PRESSURES THAT INCREASE RIVALRY AMONG COMPETING SELLERSBuyer demand is growing slowly or declining. 15.FIGURE 3.4 16.(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution 17. COMPETITIVE PRESSURES ASSOCIATED WITH THE THREAT OF NEW ENTRANTSEntry Threat Considerations: 18. MARKET ENTRY BARRIERS FACING NEW ENTRANTSIncumbent cost advantages related to learning and 19.STRATEGIC MANAGEMENT PRINCIPLE 20.FIGURE 3.5 21. COMPETITIVE PRESSURES FROM THE SELLERS OF SUBSTITUTE PRODUCTSSubstitute Products
Considerations: 22.FIGURE 3.6 23. COMPETITIVE PRESSURES STEMMING FROM SUPPLIER BARGAINING POWERSupplier Bargaining Power Depends On: 24.FIGURE 3.7 25. COMPETITIVE PRESSURES STEMMING FROM BUYER BARGAINING POWER AND PRICE SENSITIVITYBuyer Bargaining Power Considerations: 26.FIGURE 3.8 27. IS THE COLLECTIVE STRENGTH OF THE FIVE COMPETITIVE FORCES CONDUCIVE TO GOOD PROFITABILITY?Is the state of competition in the industry 28.CORE CONCEPT 29. COMPLEMENTORS AND THE VALUE NETHow the Value Net differs from the Five Forces 30.CORE CONCEPT 31.FIGURE 3.9 32. MATCHING COMPANY STRATEGY TO COMPETITIVE CONDITIONSEffectively matching a firm’s business strategy 33.STRATEGIC MANAGEMENT PRINCIPLE 34. INDUSTRY DYNAMICS AND THE FORCES DRIVING CHANGEDriving forces analysis has three steps: 35.CORE CONCEPT 36.(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution 37.STRATEGIC MANAGEMENT PRINCIPLE 38. ASSESSING THE IMPACT OF THE FACTORS DRIVING INDUSTRY CHANGE1. Are the driving forces as a whole causing 39.STRATEGIC MANAGEMENT PRINCIPLE 40. ADJUSTING STRATEGY TO PREPARE FOR THE IMPACTS OF DRIVING FORCESWhat strategy adjustments will be needed 41. STRATEGIC GROUP ANALYSISStrategic
Group 42.CORE CONCEPTS 43. USING STRATEGIC GROUP MAPS TO ASSESS THE MARKET POSITIONS OF KEY COMPETITORSConstructing a strategic group map: 44. TYPICAL VARIABLES USED IN CREATING GROUP MAPSPrice/quality range (high, medium, low) 45. GUIDELINES FOR CREATING GROUP MAPS1. Variables selected as map axes should not be highly 46.STRATEGIC MANAGEMENT PRINCIPLE 47. Comparative Market Positions of Producers in the U.S. Beer Industry: A Strategic Group Map ExampleILLUSTRATION 48. Comparative Market Positions of Producers in the U.S. Beer Industry: A Strategic Group Map ExampleILLUSTRATION 49.STRATEGIC MANAGEMENT PRINCIPLE 50. THE VALUE OF STRATEGIC GROUP MAPSMaps are useful in identifying which industry 51. COMPETITOR ANALYSISCompetitive Intelligence 52.STRATEGIC MANAGEMENT PRINCIPLE 53.FIGURE 3.10 A Framework for Competitor Analysis 54. A FRAMEWORK FOR COMPETITOR ANALYSISIndicators of a rival firm’s likely strategic moves 55. USEFUL QUESTIONS TO HELP PREDICT THE LIKELY ACTIONS OF IMPORTANT RIVALSWhich competitors’ strategies are achieving good results? 56. CREATING A STRATEGIC PROFILE OF A RIVAL COMPETITOR FIRMCurrent Strategy 57. CREATING A STRATEGIC PROFILE OF A RIVAL COMPETITOR FIRM (cont’d)Capabilities 58. KEY SUCCESS FACTORSKey
Success Factors (KSFs) 59.CORE CONCEPT 60. IDENTIFICATION OF KEY SUCCESS FACTORS1. On what basis do buyers of the industry’s product 61. THE INDUSTRY OUTLOOK FOR PROFITABILITYAn industry environment is fundamentally 62. FACTORS TO CONSIDER IN ASSESSING INDUSTRY ATTRACTIVENESSHow the firm is being impacted by the state of the
macro-environment. 63.STRATEGIC MANAGEMENT PRINCIPLE 64. INDUSTRY ATTRACTIVENESS IS NOT THE SAME FOR ALL PARTICIPANTS Industry outsiders may conclude that they have the 65. WHAT SHOULD A CURRENT COMPETITOR DECIDE ABOUT ITS INDUSTRY?When a competitor decides an industry is attractive, it What is the most important part of the process when developing a strategic group map?The most important has to do with identifying which industry members are close rivals and which are distant rivals. The second thing to be gleaned from strategic group mapping is that not all positions on the map are equally attractive.
Why do you think that no pizza chains are positioned in the area above the Pizza Huts strategic group?Why do you think that no pizza chains are positioned in the area above the Pizza Hut's strategic group? Some strategic groups are less favorably impacted by industry driving forces. Some strategic groups are less favorably positioned than others because they confront stronger competitive forces.
Which of the following are guidelines that should be followed in creating a strategic group map?Which of the following are guidelines that should be followed in creating a strategic group map? The sizes of the map circles should be proportional to the combined sales of firms in each strategic group. Creating multiple maps should be considered if there are more than two good competitive variables.
What is the best framework to understand the different competitive position that firms occupy in the industry?Strategic group mapping is a tool that organizations use to ascertain the competitive positions that competitors take in the market to remain on top. Firms use this technique to verify the areas in which they need improvement to sustain for a long duration of time along with the competitors.
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