Slides%202%20Industry%20Analysis

Slides%202%20Industry%20Analysis - 1 Strategic Management/...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 Strategic Management/ Strategic Management/ Business Policy Business Policy Slides 2 Industry Analysis 2 The Sources Of Competitive Advantage The Sources Of Competitive Advantage Some Industries Are More Profitable Than Others. ROE & ROA - Selected Industries, 1989 0% 5% 10% 15% 20% 25% 30% Pharmaceuticals Tires / Rubber Home Appliances ROE ROA 3 Profitability of US Industries (selected industries only) Household & Personal Products 22.7 Gas & Electric Utilities 10.4 Pharmaceuticals 22.3 Food and Drug Stores 10.0 Tobacco 21.6 Motor Vehicles & Parts 9.8 Food Consumer Products 19.6 Hotels, Casinos, Resorts 9.7 Securities 18.9 Railroads 9.0 Diversified financials 18.3 Insurance: Life and Health 8.6 Beverages 18.8 Packaging & Containers 8.6 Mining & crude oil 17.8 Insurance: Property & Casualty 8.3 Petroleum Refining 17.3 Building Materials, Glass 8.3 Medical Products & Equipment 17.2 Metals 8.0 Commercial Banks 15.5 Food Production 7.2 Scientific & Photographic Equipt. 15.0 Forest and Paper Products 6.6 Apparel 14.4 Semiconductors & Computer Software 13.9 Electronic Components 5.9 Publishing, Printing 13.5 Telecommunications 4.6 Health Care 13.1 Communications Equipment 1.2 Electronics, Electrical Equipment 13.0 Entertainment 0.2 Specialty Retailers 13.0 Airlines (22.0) Computers, Office Equipment 11.7 Median return on equity (%), 1999-2005 4 1 8 .4 1 5 .2 1 5 1 4 .7 1 2 .8 1 1 .9 1 1 .3 1 1 1 0 .3 1 0 .3 9 .9 9 .9 9 .6 9 .5 9 9 8 .4 7 .7 6 .9 6 .5 6 .2 0 5 1 0 1 5 2 0 P h a rm a c e u tic a ls H o u s e h o ld a n d p e rs o n a l p ro d u c ts C o m p u te r s o ftw a re a n d s e rvic e s M e d ia C o m m e rc ia l s e rvic e s S e m ic o n d u c to rs H e a lth c a re e q u ip m e rn t a n d s e rvic e s F o o d , b e ve ra g e s , to b a c c o H o te ls , re s ta u ra n ts , le is u re T e c h n o lo g y h a rd w a re a n d e q u ip m e n t A u to m o b ile s a n d c o m p o n e n ts C a p ita l g o o d s F o o d re ta ilin g C o n s u m e r d u ra b le s a n d a p p a re l R e ta ilin g O V E R A L L A V E R A G E M a te ria ls E n e rg y T ra n s p o ra tio n T e le c o m s e rvic e s U tilitie s A ve ra g e R O IC 1 9 6 3 -2 0 0 3 (% ) The Profitability of Global Industries: Return on Invested Capital, 1963-2003 5 The Sources Of Competitive Advantage Within Industries, Some Competitors Perform Better Than Others. ROE - Pharmaceutical Industry 1989 0% 10% 20% 30% 40% 50% 60% Amgen AMP Eli Lilly Merck Mylan Pfizer 6 Three Factors Determining Company Performance: Three Factors Determining Company Performance: Industry Context e.g., during the last two decades, companies in the airlines industry have been less profitable than those in the pharmaceutical industry National Context e.g., worlds most successful consumer electronics firms are in Japan Company Capabilities and Strategies e.g., Wal-mart and Southwest Airlines 7 Industry Attractiveness - Economics "When a management with a reputation...
View Full Document

Page1 / 41

Slides%202%20Industry%20Analysis - 1 Strategic Management/...

This preview shows document pages 1 - 8. Sign up to view the full document.

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