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Blank Chapt 5 Notes - Chapter 5 Industry and Competitor...

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Chapter 5 Industry and Competitor Analysis ***Highlighted = Notes on Exam 1 Study Guide*** Industry ___________________________________________________________________________________________ _________ Industry Analysis __________________________________________________________________________________________ Once the new venture is deemed feasible in regard to the industry and market in which it will compete, a more in-depth analysis is needed. Three questions : 1. _________________________________________________________ 2. _________________________________________________________ 3. _________________________________________________________ Importance of Industry Versus Firm Specific Factors - both firm- and industry-specific factors contribute to a firm’s profitability. 1. Firm-level factors include a firm’s: a) _____________ b) _____________ c) _____________ d) _____________ e) other resources 2. Industry-specific factors include: a) _______________________________ b) _______________________________ c) _______________________________ d) and other factors discussed in the chapter The Five Competitive Forces That Determine Industry Profitability - for understanding the structure of an industry and to determine industry profitability. Each of the five forces impacts the average rate of return for the firms in an industry by applying pressure on industry profitability. Goal is to position the firms in a way that avoids or diminishes these forces – in an attempt to beat the average rate of return for the industry (i.e., earn long-term above average returns).
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