BMGT301 Stratefy - forces

BMGT301 Stratefy - forces - BMGT301:IT&Strategy:Part2...

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Five Forces   Five Forces - Dr.  1
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Political/L egal Industry  Environment Demographic Economic Technological Global Competitive Environment Sociocultural Five Forces - Dr.  2 Components Of The Macro Environment
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Objective - use this model to identify potential  areas where IT can be used to gain a competitive  advantage Five Forces - Dr.  3 Competitive Forces Model
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Five Forces - Dr.  4 Industry Attractiveness/Porter’s  Five Forces 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 Bargaining power of buyers (and channels) Threat of substitute products and services
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Porter’s  Five Forces Model  determines the relative  attractiveness of an industry Five Forces - Dr.  5 The Five Forces  (Porter, 1980)
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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 Threat of forward integration Buyer concentration Buyer volume Buyer switching costs Buyer information Ability to integrate backward Substitute products Price / total purchases Product differences Brand identity Impact of quality / performance Buyer profits Five Forces - Dr.  6 Porter’s Five Forces Analysis Source: Michael E. Porter, Competitive Advantage
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SUPPLIER POWER LOW/\MODERATE
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This note was uploaded on 12/02/2011 for the course BMGT 301 taught by Professor Wang during the Fall '08 term at Maryland.

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BMGT301 Stratefy - forces - BMGT301:IT&Strategy:Part2...

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