L3 : Conducting an Industry Analysis: Structure, 5-forces, and Competitive environment Flashcards
Industry
group of firms producing products and services that are essentially the same
market
group of customers for specific products or services that are essentially the same
sector
broad industry group (or group of markets) which are put together to produce products and offer services, especially relevant in the public sector
PESTEL analysis
when we perform it, we want to understand for each dimension what are the possible outcomes currently and in the future within the macro-environment : opp + threats
perform it to remain operational in the market + non eco factors can represent opp for future developement
P- PESTEL analysis
Political :
- direct role of the state ?
- Political exposure to gvt policies, lobbying groups, regulations, taxation… => tells you to try to wield political influence through contribution to pol parties… => support can sustain your business operations
E - PESTEL analysis
Economic: eco env can affect customers’ willingness => watch out forecasting about changes in inflation, interest rates, unemployment, economic growth rates and global eco trends
S- PESTEL analysis
socio-cultural: understand whether there are some shifts and trends which may represent an opp or a threat
T- PESTEL analysis
technology: watch out whether there are some emerging tech or development which may represent an opp or a threat
E(2) - PESTEL analysis
environment: whether the green env issues affect the business and how to deal with them in the future and how is the business perceived by consumers
threat or opp
L- PESTEL analysis
legal: legislative and regulatory constraints or changes
scenario based analysis
introduce detailed and plausible views on ho the business env might dev in the future, based on key influences and drivers of change
competition def
rivalry among businesses for the same customers
monopoly competition def
a sit in which many sellers differentiate their products from those of competitors in at least some small ways
Porter’s 5 forces framework
helps to find the attractiveness of an industry in terms of 5 competing forces
5 competing forces
