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MIS
Environmental
Scanning
Strategy Formulation
Strategy
Implementation
The internal analysis can identify the firm's strengths and weaknesses
and the external analysis reveals opportunities and threats. A profile
of the strengths, weaknesses, opportunities, and threats is
generated by means of a SWOT analysis
An industry analysis can be performed using a framework developed
by Michael Porter known as Porter's five forces. This framework
evaluates entry barriers, suppliers, customers, substitute products,
and industry rivalry.
Strengths Weaknesses
Supplier concentration
Importance of volume to supplier
Differentiation of inputs
Impact of inputs on cost or differentiation
Switching costs of firms in the industry
Presence of substitute inputs
Threat of forward integration
Cost relative to total purchases in industry
Focus Focus
Narrow Strategy Strategy
(Market Segment) (low cost) (differentiation)
• Cost Drivers
• Customer Drivers
• Competitive Drivers
• Government Drivers
Management Information System 41
Types of International Strategy: Multi-domestic vs.
Global
• Multi-domestic Strategy
– Product customized for each market
– Decentralized control - local decision making
– Effective when large differences exist between countries
– Advantages: product differentiation, local responsiveness,
minimized political risk, minimized exchange rate risk
• Global Strategy
– Product is the same in all countries.
– Centralized control - little decision-making authority on the local
level
– Effective when differences between countries are small
– Advantages: cost, coordinated activities, faster product
development