Session 5 - BMGT301:IT&Strategy:Part2 FiveForces...

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Click to edit Master subtitle style  3/3/11  Class 5 - BMGT301    1
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 3/3/11  Class 5 - BMGT301  Please create your blog and send the link to: Karake301.s2011@gmail.com (section 501) Karake301.s12011@gmail.com (section 601) Group formation (6 students/group) is due TODAY  Feb. 14th ; once you choose your topic, please  send an email to the above gmail account. Topics  are assigned on first come first served basis  Class 4 - BMGT301  2 Reminders
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 3/3/11  Class 5 - BMGT301  One blog per week Please Wed. Feb. 16th -- Value Chain Analysis  Presentations on Wed. Feb. 16th: Section 501 – Last Name starting with B Section 601 – Last Name Starting with Be -Br 3
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 3/3/11  Class 5 - BMGT301  Political /Legal Industry  Environment Demographi c Economi c Technologic al Global Competitive Environment Sociocultur al Components Of The Macro Environment
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 3/3/11  Class 5 - BMGT301  Objective - use this model to identify potential  areas where IT can be used to gain a competitive  advantage 5 Competitive Forces Model
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 3/3/11  Class 5 - BMGT301  6 Industry Attractiveness/Porter’s  Over time, profitability is determined by industry structure  (which the Internet impacts) Industry structure (and the profitability of the average  competitor) are shaped by five forces: Intensity of intra-industry competition Barriers to entry Bargaining power of suppliers
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 3/3/11  Class 5 - BMGT301  Porter’s  Five Forces Model  determines the relative  attractiveness of an industry 7 The Five Forces  (Porter, 1980)
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 3/3/11  Class 5 - BMGT301  Threat of New Entry Rivalry Among Existing Competitors Bargaining Power of Customers Threat of Substitutes Bargaining Power of Suppliers Economies of scale Proprietary product differences Brand identity Switching costs Capital requirements Access to distribution Absolute cost advantages Government policy Expected retaliation Relative price performance of substitutes Switching costs Buyer propensity to substitute Industry growth Fixed costs / value added Overcapacity Product differences Brand identity Switching costs Concentration and balance Informational complexity Diversity of competitors Corporate stakes Exit barriers Differentiation of inputs Switching costs Presence of substitute inputs Supplier concentration Importance of volume to supplier Cost relative to total purchases Impact of inputs on cost or differentiation
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This note was uploaded on 03/02/2011 for the course BMGT 301 taught by Professor Wang during the Spring '08 term at Maryland.

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Session 5 - BMGT301:IT&Strategy:Part2 FiveForces...

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