Beruflich Dokumente
Kultur Dokumente
and Leadership
Lecture Seven
External Analysis (2): the
near environment and
market and industry
features
Newcastle Business School
The Strategic Management
Process
External Current
Analysis Strategy
Strategic Evaluation
SWOT Key Issues
Options + Choices
Internal Current
Analysis Objectives
Goods
Industry Market
Money
Marketplace
Alcopops Whisky
Consumers
Cider Beer
Squash
Alcopops Goods
18-25yr
Beers
olds
Squash Money
Pure competition?
Monopolistic competition?
Oligopoly? Monopoly?
Threat of Substitutes:
– Direct substitutes meet the same customer needs as the industry’s
product
• e.g. Eurostar vs Cross-Channel Ferries vs Air Travel
– Indirect substitutes compete for discretionary expenditure
• e.g. new car vs holiday vs home refurbishment
– NOTE: the same products offered by other members of the
industry are NOT substitutes in this sense