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Chapter Title
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16/e PPT !
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- ersta i the Factors that
Determi e a Compa s Situatio
Diagnosing a company¶s situation has two
facets
Assessing the company¶s O O
OO
ü ndustry and competitive conditions
ü Forces acting to reshape this environment
Assessing the company¶s O
OO
ü carket position and competitiveness
ü Competencies, capabilities, resource strengths
and weaknesses, and competitiveness
3-2
Fi 31: From Thi i Strateicall about the
Compa s Situatio to Choosi a Strate
3-3
Fi 3: The Compo e ts of a Compa s Macro-e iro me t
3-4
Thi i Strateicall about a
Compa s Macro-e iro me t
A company¶s macro-environment includes all OO
O O outside its boundaries
Diagnosing a company¶s external situation involves
assessing O
that have a
bearing on the decisions a company¶s makes about its
Direction
Objectives
Strategy
Business model
Requires that company managers
OO OOO to
dentify potentially important external developments
Assess their impact and influence
Adapt a company¶s direction and strategy as needed
3-5
Ñe Questio s Reari the
I ustr a Competitie E iro me t
What forces
How stro are
are rii
competitie
cha e i the
forces?
i ustr?
ºOº OO
O
3-9
Fi 33: The Fie Forces Moel of Competitio
3-10
A al i the Fie Competitie Forces:
How to Do It
^O: O
the specific OO
OO associated with each of
the five forces
3-12
Fi 3: Factors Affecti Threat of E tr
3-13
Fi 36: Factors Affecti Competitio From Substitute Proucts
3-14
Fi 3: Factors Affecti Barai i Power of Suppliers
3-15
Fi 3
: Factors Affecti Barai i Power of Buers
3-16
Questio 3: What Factors Are Drii I ustr
Cha e a What Impacts Will The Hae?
A O is a
cluster of firms in an industry
with similar competitive
approaches and market positions
3-19
Strateic Group Mappi
Firms
in OO have two or more
OO O in common
pave comparable product line breadth
Sell in same price/quality range
Emphasize same distribution channels
Use same product attributes to appeal
to similar types of buyers
Use identical technological approaches
Offer buyers similar services
Cover same geographic areas
3-20
Questio : What Strateic Moes Are
Rials Liel to Mae Next?
A firm¶s uOO O are affected by
Current strategies of competitors
Future actions of competitors
Profiling
key rivals involves gathering
OOOO O about
Current strategies
cost recent actions and public announcements
Resource strengths and weaknesses
Efforts being made to improve their situation
Thinking and leadership styles of top executives
3-21
Competitor A alsis
3-25