Answer Driving forces analysis consists of not one but three steps 1

Answer driving forces analysis consists of not one

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Answer: Driving forces analysis consists of not one but three steps: (1) identifying what the driving forces are; (2) assessing whether the drivers of change are, individually or collectively, acting to make the industry more or less attractive; and (3) determining what strategy changes are needed to prepare for the impact of the driving forces.Difficulty: 3 HardTopic: Analyzing Industry Competition
Learning Objective: 03-02 Recognize the factors that cause competition in anindustry to be fierce, more or less normal, or relatively weak.Bloom’s: AnalyzeAACSB: Analytical ThinkingAccessibility: Keyboard Navigation91) Identify at least three benefits of constructing a strategic group map.Answer: A strategic group consists of those industry members with similar competitive approaches and positions in the market. Companies in the same strategic group can resemble one another in a variety of ways. For example, they may have comparable product-line breadth, emphasize the same distribution channels, depend on identical technological approaches, or offer buyers essentially the same product attributes or similar services and technical assistance. Among the benefits of constructing a strategic group map are: (1) examining what strategic groups exist; (2) identifying the companies within each group; (3) determining if a competitive “white space” exists, that is, where industry competitors are able to create and capture altogether new demand; (4) tabulating the number of strategic groups in an industry; and (5) determining their respective market positions.Difficulty: 2 MediumTopic: Analyzing Industry CompetitionLearning Objective: 03-03 Map the market positions of key groups of industry rivals.Bloom’s: UnderstandAACSB: Analytical ThinkingAccessibility: Keyboard Navigation92) What is the analytical value of studying competitors and trying to predict what moves rivals will make next?Answer: Michael E. Porter’s four indicators of a rival’s likely strategic moves include a rival’s current strategy, objectives, capabilities, and assumptions
about itself and the industry. A strategic profile of a rival that provides good clues to its behavioral proclivities can be constructed by characterizing the rival along these four dimensions. Unless a company pays attention to the strategies and situations of competitors and has some inkling of what moves these rivals will be making, it ends up flying blind into competitive battle.Difficulty: 2 MediumTopic: Competitive BehaviorLearning Objective: 03-03 Map the market positions of key groups of industry rivals.Bloom’s: UnderstandAACSB: Analytical ThinkingAccessibility: Keyboard Navigation93) What are industry key success factors (KSFs)? Why is it important for strategy makers to have a clear understanding of an industry’s KSFs?Answer: KSFs are the strategy elements, product attributes, competitive capabilities, or intangible assets with the greatest impact on future success in the marketplace. KSFs by their very nature are so important to future

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