03-09-2012, 03:53 PM
Business Policy & Strategy
Business Policy & Strategy.pptx (Size: 152.18 KB / Downloads: 85)
Entry Barriers
Scale Economies
Product differentiation
Capital requirements
Switching costs
Distribution access
Cost disadvantages independent of scale (proprietary product technology, raw material access, locations, subsidies,
Govt. policies
Expected retaliation
Slow Industry Growth
High fixed / storage costs
Lack of differentiation and low switching costs
Capacity Augmentation (PVC)
Diverse competition
High strategic stakes
High exit barriers and Mobility barriers
Strategic Groups
A group of firms in an industry following the same or similar strategy along the same strategic dimensions
Strategic Group Analysis
Strategic group mapping is an analytical tool. Methods and Techniques for Analyzing Business Competition, we have often been asked to identify the most useful or insightful models for CI. Each model has its own strengths and weaknesses: selecting the most useful or most insightful technique is always highly dependent on the strategic issue at hand.However, among the vast number of techniques available, many are either unknown to most analysts and CI professionals or under-utilized, and yet they can provide great insight. One of these analytical techniques is strategic group analysis.
Analysis is used to determine:
Different competitive positions of companies in the industry
Intensity of rivalry within and between groups
Profit potential of various groups
Implications of competitive position
Porter’s Five Force Model:
Threats of entry
Internal rivalry
Bargaining power of buyers and suppliers
Threat of substitution
The Five Forces jointly determine the profitability of the industry, the groups in the industry and individual companies within the groups
Weaknesses
Provides little guidance on implementation
Depends on identifying the strategically important dimensions
Requires in-depth industry knowledge and experience
Does not incorporate importance of government and social issues
Business Policy & Strategy.pptx (Size: 152.18 KB / Downloads: 85)
Entry Barriers
Scale Economies
Product differentiation
Capital requirements
Switching costs
Distribution access
Cost disadvantages independent of scale (proprietary product technology, raw material access, locations, subsidies,
Govt. policies
Expected retaliation
Slow Industry Growth
High fixed / storage costs
Lack of differentiation and low switching costs
Capacity Augmentation (PVC)
Diverse competition
High strategic stakes
High exit barriers and Mobility barriers
Strategic Groups
A group of firms in an industry following the same or similar strategy along the same strategic dimensions
Strategic Group Analysis
Strategic group mapping is an analytical tool. Methods and Techniques for Analyzing Business Competition, we have often been asked to identify the most useful or insightful models for CI. Each model has its own strengths and weaknesses: selecting the most useful or most insightful technique is always highly dependent on the strategic issue at hand.However, among the vast number of techniques available, many are either unknown to most analysts and CI professionals or under-utilized, and yet they can provide great insight. One of these analytical techniques is strategic group analysis.
Analysis is used to determine:
Different competitive positions of companies in the industry
Intensity of rivalry within and between groups
Profit potential of various groups
Implications of competitive position
Porter’s Five Force Model:
Threats of entry
Internal rivalry
Bargaining power of buyers and suppliers
Threat of substitution
The Five Forces jointly determine the profitability of the industry, the groups in the industry and individual companies within the groups
Weaknesses
Provides little guidance on implementation
Depends on identifying the strategically important dimensions
Requires in-depth industry knowledge and experience
Does not incorporate importance of government and social issues