Chapter 13: Competition in Global Industries

Global Industries • Letak

Global keunggulan Persaingan di tingkal dunia
Position dalam scope
global

Terkoordinasi

• Posisi strategis
Strategic Karakteristik global
Position
diantara
pesaing
 Peluang dan Rintangan Persaingan Global

Competitive Impediments of • Evolution Global Indsutries:

Advantages Competition
Environmental triggers,
• Comparative • Economics Strategic innovation, Access
advantage • Manajerial
• Economics scale
• Strategic alternatives:
• Institutional
• Global experience • Perceptual/resources Broad-line global, global focus,
• Differentiation national focus, protecter niche
• Technology
• Mobility
 Chapter 14: The Strategic Analysis of Vertical
Integration
Combine various functions
of business (economic “Make vs Buy” decisions
processes)

Economic and
Upstream & Downstream
administrative
firm
consequences

Cost & Benefits

Chapter 15: Capacity Expansion
Major strategic decision because of the capital required, and the
complexity of the analysis

Add the capacity needed to support the firm's objectives without

creating overcapacity in the industry

Causes of overbuilding capacity: technological, structural,

competitive, information flow, managerial, governmental, limits

Pre-emptive strategies: attempt to lock up a major share of the

industry market to discourage entry or expansion by competitors.
 Determine the firm’s options for the size and type of capacity
additions

Access probable future demand and costs of inputs

Access probable technological changes and probability of

obsolescence
• Elements of Capacity
Expansion Decision
Add these to determine industry supply and demad balance,
and resulting industry prices and costs

Determine cash flow from capacity additions

Test the analysis for consistency

Expansion curve
• Large Capacity Expansion Relative
to Expected Market Size
• Large economies of scale relative to
total market demand
• Significant experience curve
 Chapter 16: Entry Into New Business

• Two forms of entry into a new business:

Internal
Acquisition
Development
Internal Development
Acquisition
Must consider
structural entry Sequenced Entry
Doesn’t add a new
barriers and firm to the industry,
retaliation involves an initial
price is set in a well entry into one group
organized market for and a subsequent
companies. move to another
*Irrational bidders & group, or to the
height of floor price ultimate target