External Analysis Flashcards
1
Q
General Environment
A
Dimensions in the broader society that influence the industry and the firms within the society
2
Q
Industry Environment
A
Set of Factors that directly influence a firm and its competitive actions and responses
3
Q
Competitor Environment
A
Focuses on each company against which a firm directly competes
4
Q
PESTLE
A
Political, Environmental, Social, Technical, Legal, Environmental, Demographic, Global,
5
Q
Industry Analysis
A
Threat of new entrants, threat of substitutes, bargaining power of buyers, suppliers, rivalry amongst existing competitors
6
Q
Rivalry Amongst competitors
A
# of players, Industry growth Brand loyalty Barriers to exit Switching costs
7
Q
Threat of new entrants
A
Barriers to Entry Economies of scale Brand loyalty Capital requirements Cumulative experience Gov policies access to distribution channels Switching costs
8
Q
6 steps of industry analysis
A
- define the industry : product and geographic market
- Identify the participants: buyers, suppliers, competitors, substitutes, potential entrants
- evaluate the 5 forces (the specific strength of each one)
- Determine overall industry structure: profitability, controlling forces, positioning of best performers
- analyze recent and potential future changes to each force.
- identify industry structure aspects that might be influenced by competitors, new entrants or own firm
9
Q
Strategic group
A
A set of firms emphasizing similar strategic dimensions and using a similar strategy is called
