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8/10/2019 Business Policy Lecture 3
1/14
School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Business Policy
Lecture 3OLA MATTISSON
8/10/2019 Business Policy Lecture 3
2/14
School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Business Policy lecture 3
Industry analysis
Agenda 2 Swedish minutes
Industry analysis
Competitive situation and industry attractiveness
5 forcesa framework for industry analysis
Competitor analysis
8/10/2019 Business Policy Lecture 3
3/14
School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Industry analysis and competitive
strategy
Corporate strategy
What industries do the company participate in? Howto allocate resources?
Business strategy
How to create competitive advantage?
8/10/2019 Business Policy Lecture 3
4/14
8/10/2019 Business Policy Lecture 3
5/14School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Identify relevant features of the
industry
Market size
Market growth rate
Capacity surpluses or shortages
Industry profitability
Entry/exit barriers
Product properties
Rapid technological change
Capital requirementsVertical integration
Economies of scale
Product innovation pace
8/10/2019 Business Policy Lecture 3
6/14School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Overall competition analysis
Porters 5 forces model
Rivalry among competing sellers
Threat of potential entry
Competition from substitutes
Power of suppliers
Power of customers
(Grant, page 65 pp)
8/10/2019 Business Policy Lecture 3
7/14School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Overall competition analysis
Porters 5 forces model
http://www.google.se/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=ZIdvCuvc3Kw9_M&tbnid=alFc9WJltG3hrM:&ved=0CAUQjRw&url=http://www.notesdesk.com/notes/strategy/porters-five-forces-model-porters-model/&ei=zwI6UtngO8qrtAa_gIGoAQ&bvm=bv.52288139,d.d2k&psig=AFQjCNEdb-E1_KA3fWBAM2qMgU2eqO2AHA&ust=13796199169836178/10/2019 Business Policy Lecture 3
8/14
School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Overall competition analysis
Porters 5 forces model
http://www.google.se/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=dn9UA0n1sj_YtM&tbnid=ATacodE3fH0x3M:&ved=0CAUQjRw&url=http://wikireedia.net/wikireedia/index.php?title%3DPorter%27s_Five_Forces&ei=ewM6UtXCBYzRsgblsIGYDA&bvm=bv.52288139,d.Yms&psig=AFQjCNGFDE38WWMkIawSZ_Vc5wDx703f5g&ust=1379619965484587http://www.google.se/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=dn9UA0n1sj_YtM&tbnid=ATacodE3fH0x3M:&ved=0CAUQjRw&url=http://wikireedia.net/wikireedia/index.php?title%3DPorter%27s_Five_Forces&ei=ewM6UtXCBYzRsgblsIGYDA&bvm=bv.52288139,d.Yms&psig=AFQjCNGFDE38WWMkIawSZ_Vc5wDx703f5g&ust=1379619965484587http://www.google.se/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=dn9UA0n1sj_YtM&tbnid=ATacodE3fH0x3M:&ved=0CAUQjRw&url=http://wikireedia.net/wikireedia/index.php?title%3DPorter%27s_Five_Forces&ei=ewM6UtXCBYzRsgblsIGYDA&bvm=bv.52288139,d.Yms&psig=AFQjCNGFDE38WWMkIawSZ_Vc5wDx703f5g&ust=13796199654845878/10/2019 Business Policy Lecture 3
9/14
School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Overall competition analysis
Porters 5 forces model
Pre-requisites for
success
What do
customers want?
An alys is of compet it ion
What drives competition?
What aret the main dimensions
of competition?
How intense are competition?
How can we obstain a superior
competitive position?
How does the frm
survive competition?
An alys is of demand
Who are our customers?
What do they want?
Key Success
Factors
8/10/2019 Business Policy Lecture 3
10/14
School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Industry analysis and competitive
strategy
Segmentation
To divide an industry into subsections with differentcharacteristics
Customer segments (ex. geograpy, customer type,distribution)
Product segments (ex. design, size, price)
Strategic groups
the group of firms in an industry following the same orsimilar strategy along the strategic dimensions
Strategic dimensionsdecisive dimensions for strategicdecisions (ex. vertical integration, new markets, product
range)
8/10/2019 Business Policy Lecture 3
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School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Competitor analysis
Why?
Forsee competitors decisions and strategies
Forsee competitors reactions on our initiatives
To evaluate how to direct competitor actions in a directionthat benefits us
8/10/2019 Business Policy Lecture 3
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School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Competitor analysis
How is the firm competing? Today and inthe future?
Investments, R&D and new products, recruitments
Identify competitors current and futuregoals
Identify competitors assumptions about
the industry Industry recipes
Identify competitors resources andcapabilities
Cash, technology, factor costs
8/10/2019 Business Policy Lecture 3
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School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
Overall industry attractiveness
Overall summarizing picture
Conclusions about industry attractiveness and potentials
8/10/2019 Business Policy Lecture 3
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School of Economics and Management | Ola Mattisson | FEKH11 Business Policy|
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