MGT4394 External Analysis Gen env and Industry Structure Handout

MGT4394 External Analysis Gen env and Industry Structure Handout

Info iconThis preview shows pages 1–2. 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
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Industry (a.k.a. Porter’s 5-Forces) Analysis o E Bargaining Power of Suppliers Riva E Co Su Determinants of Rivalry Among Existing Competitors • Industry growth • Fixed (or storage) cost/value added • Intermittent overcapacity • Product differences • Brand identity • Switching costs Determinants of Entry Barriers • Economies of scale • Proprietary product differences • Brand identity • Switching costs • Capital requirements • Access to distribution Determinants of Power of Buyers Determinants of Threat of Substitutes • Bargaining leverage • Buyer concentration versus firm concentration • Buyer volume • Buyer switching costs relative to firm switching costs • Buyer information • Relative price performance of substitutes • Switching costs • Buyer propensity to substitute Determinants of Supplier Power • Differentiation of inputs • Switching costs of suppliers and firms in the industry • Presence of substitute inputs • Supplier concentration • Importance of volume to supplier • • • • • Concentration and balance Informational complexity Diversity of competitors Corporate stakes Exit barriers • Absolute cost advantages: • Proprietary learning • Access to necessary inputs • Proprietary low-cost product design • Government policy • Expected retaliation • • • • • • • • Ability to backward integrate Substitute products Pull-through Price sensitivity Price/total purchases Product differences Brand identity Impact on quality & performance • Buyer profits • Decision makers’ incentive • Cost relative to total purchases in the industry • Impact of inputs on cost or differentiation • Threat of forward integration relative to threat of backward integration by firms in the industry ...
View Full Document

This note was uploaded on 09/19/2011 for the course MGT 4394 at Virginia Tech.

Page1 / 2

MGT4394 External Analysis Gen env and Industry Structure Handout

This preview shows document pages 1 - 2. Sign up to view the full document.

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