Chap3and4PP - Figure 3.1: From Thinking Strategically to...

Info iconThis preview shows pages 1–15. Sign up to view the full content.

View Full Document Right Arrow Icon
Figure 3.1: From Thinking Strategically to Choosing a Strategy Identify Strategic Options Select the Best Strategy Form a Strategic Vision Thinking Strategically about External Environment Thinking Strategically about Internal Environment
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 1: What are the Industry’s Dominant Economic Features? Market size and growth rate Number of rivals Scope of competitive rivalry Number of buyers Degree of product differentiation Product innovation Supply/demand conditions Pace of technological change Vertical integration Economies of scale Learning/experience curve effects
Background image of page 2
Question 2: What Kinds of Competitive Forces are Industry Members Facing?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fig. 3.4: Existing Rivalry
Background image of page 4
Fig. 3.5: Threat of New Entry
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fig. 3.6: Threat of Substitute Products
Background image of page 6
Fig. 3.7: Bargaining Power of Suppliers
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fig. 3.8: Bargaining Power of Buyers
Background image of page 8
Question 3: What Forces Are Driving Industry Change? Driving forces are the major underlying causes of changing industry and competitive conditions 1. Identify those forces likely to exert greatest influence over next 1 - 3 years Usually no more than 3 - 4 factors qualify as real drivers of change 2. Assess impact What difference will the forces make - favorable? unfavorable?
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 4: What Market Positions Do Industry Rivals Occupy? One technique for revealing the different competitive positions of industry rivals is strategic group mapping A strategic group consists of those rivals with similar competitive approaches and positions in the market
Background image of page 10
Procedure for Constructing a Strategic Group Map STEP 1 : Identify competitive characteristics that differentiate firms in an industry from one another STEP 2 : Plot firms on a two-variable map using pairs of these differentiating characteristics STEP 3 : Assign firms that fall in about the same strategy space to same strategic group STEP 4 : Draw circles around each group, making circles proportional to size of group’s respective share of total industry sales
Background image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Example: Strategic Group Map of the Video Game Industry Types of Video Game Suppliers/Distribution Channels Overall Cost to Players of Video Games Low (Coin-operated equipment) Medium (Video players cost $100-$300) High (Use PC) Video Arcades/Coin- Op. Machines Home PCs Video Game Consoles Online Video Game Sites Sony, Sega, Nintendo, several others Arcade operators Publishers of games on CD-ROMs MSN Gaming Zone, Pogo.com, America Online, HEAT, Engage, Oceanline, TEN
Background image of page 12
Question 5: What Strategic Moves Are Rivals Likely to Make Next? A firm’s own best strategic moves are affected by Current strategies of competitors Future actions of competitors Profiling key rivals involves gathering competitive intelligence about their Current strategies Most recent moves Resource strengths and weaknesses Announced plans
Background image of page 13

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 6: What are the Key Factors for Future Competitive Success? Competitive elements most affecting
Background image of page 14
Image of page 15
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/31/2011 for the course GEB GEB 4890 taught by Professor Geiger during the Summer '08 term at University of South Florida.

Page1 / 33

Chap3and4PP - Figure 3.1: From Thinking Strategically to...

This preview shows document pages 1 - 15. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online