INDUSTRY AND COMPETITIVE ANALYSIS Methods of Industry and Competitive Analysis Industrys Dominant Economic Traits Industrys Competitive

ve Forces Drivers of Industry Change Competitive Positions of Rivals Competitive Moves of Rivals Key Success Factors Conclusions: Overall Industry Attractiveness What Is Situation Analysis?

Two considerations Companys external or macro-environment Industry and competitive conditions Companys internal or micro-environment

Competencies, capabilities, resource strengths and weaknesses, and competitiveness Question 1: What are the Industrys Dominant Economic Traits?

Market size and growth rate Scope of competitive rivalry Number of competitors and their relative sizes Prevalence of backward/forward integration Entry/exit barriers Nature and pace of technological change Product and customer characteristics Scale economies and experience curve effects Capacity utilization and resource requirements

Industry profitability IDENTIFYING INDUSTRY KEY SUCCESS FACTORS(KSF)

Answers to three questions pinpoint KSFs On what basis do customers choose between competing brands of sellers? What resources and competitive capabilities does a seller need to have to be competitively successful?

What does it take for sellers to achieve a sustainable competitive advantage? Types of Competition: Brand Volkswagen has competition from Toyota, Honda Industry Volkswagen has competition from all automobile companies Form Volkswagen has competition from cars,two-wheelers, bicycles etc Generic Volkswagen has competition from all like consumer durables , vacations , bank deposits etc ELEMENTS of MACRO-ENVIRONMENT ( PESTEL ) Political How a country runs its politics.eg.Democracy / Autocracy /Dictatorship /Socialist /capitalist / Fanatic etc Economicalnature of economies eg . Agri /Industry/Services , Rural/ Urban , Subsistence/ Raw Material Exporting / Industrializing / Industrial Individual issues like : INCOME / SAVINGS / DEBT / CREDIT AVAILABLE / Sociologicalhow a society runs itself. Within EUROLAND countries differ in social practices. Technological Technology means a new way of doing things. A country has : Opportunity for Innovation/ R&D Budget /Govt.Regulations, encouragements . open to new ideas is a measure of technological orientation. Legal Business Legislation/Company laws/Consumer Acts Ecological RAW MATERIAL AVAILABILITY / ENERGY / POLLUTION LEVEL / ROLE OF GOVT. EURO-II norms / leaded petrol / CNG emission norms./PETA/Child labour / Garbage or effluent disposal/ Biodegradable /Recyclable eg Polypack ban in Developed countries. 92 CulturalHow a group of people behave & think . Culture is the set of beliefs, values any group has. ELEMENTS of MICRO-ENVIRONMENT: Own employeesroles played by each employee in SALES /MARKETING/ FINANCE/ PRODUCTION /HRD Suppliersroles played by suppliers CustomersNEEDS / WANTS /DEMANDS in terms of PRICE /QUALITY/ DELIVERY / CREDIT IntermediariesDISTRIBUTION CHANNEL

OwnersSHARE HOLDERS. FinancersBANKS / FINANCIAL INSTITUTIONS Local ResidentsENCOURAGEMENT /OBSTACLES Pressure GroupsAttention Seekers eg. KFC, CARGIL SEEDS,GMs, RALPH NADER of AUTO CONSUMER GROUP