BUS189chp6Oct13-09 - BUSINESS-LEVEL STRATEGIES AND INDUSTRY ENVIRONMENTS BUSINESS 189(chpt 6 Fall 2009 DR MARK FRUIN ENVIRONMENTS RULE FIRMS MUST

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BUSINESS-LEVEL STRATEGIES AND INDUSTRY ENVIRONMENTS BUSINESS 189 (chpt. 6) Fall 2009 DR. MARK FRUIN
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ENVIRONMENTS RULE FIRMS MUST FIT THEIR STRATEGIES TO THE ENVIRONMENTS IN WHICH THEY EXIST DONUT RING MODEL AS APPROXIMATION BASIC LAW OF EVOLUTION = ADAPT OR DIE OUT INDUSTRY ENVIRONMENT COMPETITIVE ENVIRONMENT INSTITUTIONAL ENVIRONMENT MACRO-ECONOMIC ENVIRONMENT ORGANIZATIONAL ENVIRONMENT
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SUSTAINING COMP ADVANT IN DIFF INDUSTRY ENVIRONMENTS RECOGNIZE DIFF INDUSTRY ENVIRONMENTS FRAGMENTED VERSUS CONCENTRATED INDUSTRIES FRAGMENTED INDUSTRY STRATEGIES: CONCENTRATED INDUSTRIES HAVE STAGES DRIVEN BY TECH & MRKT MATURATION EMBRYONIC MATURE
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FRAGMENTED INDUSTRY NEW LARGE NUMBERS OF SMALL AND MED- SIZED COMPANIES LOW BARRIERS TO ENTRY HARD TO REALIZE ECONOMIES OF SCALE BETWEEN GENERIC STRATEGIES, WHICH ONE APPLIES??? COST LEADERSHIP OR DIFFERENTIATION?
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OVERCOMING FRAGMENTATION CHAINING STRATEGY (WAL-MART) FRANCHISING (CENTURY 21, McD) HORIZONTAL MERGER (BUDWEISER, NOW IN-BEV) CONSOLIDATE W/ NEW TECH AMAZON, eBAY, GOOGLE (?) HIGH LEVELS OF PERSONAL/PROFESSIONAL SERVICE HIGH END HEALTH CLUBS, LAW FIRMS
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LEADING IN EVOLVING INDUSTRIES (THAT WILL BE CONCENTRATED) INDUSTRIES ARE COMPOSED OF SEGMENTS & DRIVEN BY TECHNOLOGY SEGMENTS ARE DEFINED AS? PRODUCT ____ CUSTOMER ____ LOCAL DIFFERENCES UNDERSTAND WHAT’S GOING ON IN INDUSTRY TARGET PRODUCT/ MARKET SEGMENTS ACCORDINGLY OF COURSE, HAVE TO TARGET WHERE INDUSTRY IS GOING RATHER THAN WHERE IT IS TODAY
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EMBRYONIC/EMERGING/GROWTH INDUSTRIES EMBRYONIC INDUSTRY = WHEN TECH BEGINNING TO DEVELOP TECH INNOVATION DRIVES INDUSTRY WHICH INDUSTRIES EMBRYONIC TODAY? EMERGING/GROWTH IND WHEN MARKET DEMAND BEGINS TO GROW RAPIDLY MARKET DEMAND DRIVES INDUSTRY OBVIOUSLY DEMAND GROWTH TAKES TIME SOME FIRMS CATCH THE WAVE & SOME DON’T
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SLOW GROWTH AT FIRST BECAUSE LIMITED PERFORMANCE/POOR QUALITY CUSTOMERS UNFAMILIAR W/ NEW TECH LACK COMPLEMENTARY PRODUCTS PRODUCTION COSTS ARE HIGH INDUSTRY GOES FROM EMBRYONIC -> HIGH GROWTH - WHY? TECH PROGRESS MAKES PRODUCT EASIER TO
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This note was uploaded on 09/08/2010 for the course BUS 189 at San Jose State University .

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BUS189chp6Oct13-09 - BUSINESS-LEVEL STRATEGIES AND INDUSTRY ENVIRONMENTS BUSINESS 189(chpt 6 Fall 2009 DR MARK FRUIN ENVIRONMENTS RULE FIRMS MUST

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