S.2.3 Analyzing Industries Flashcards
1
Q
Industry environment:
A
- National/international economy
- Technology
- Government and politics
- Natural environment
- Demographic structure
- Social structure
2
Q
Basic conditions:
A
- Consumer demand
- Supply
- Technology
- Information
- Political environment
3
Q
Industry structure:
A
- Concentration
- Market entry barriers
- Product differentiation
- Economies of scale
- Organisations
4
Q
Firm conduct:
A
- Pricing behaviour
- Product design
- Marketing
- Investment
- Acquisitions
- R&D
5
Q
Performance:
A
- Benefit
- Allocation
- Progress
- Emplyoment
6
Q
Managerial implications: Influencing the balance of forces
A
- Building entry barriers
- Differentiate products by characteristics other than price
- Improving product‘s attractiveness (relatively to Substitutes)
- Reduction of suppliers‘ singularity
- Reduction of buyers‘ singularity
7
Q
Managerial implications:
A
- Create a defendable position against the competitive forces for the firm
- Influencing the balance of forces
- Anticipating shifts in factors underlying the competitive forces
8
Q
New entrants: Barriers to entry:
A
- Economies of scale
- Capital requirements
- Switching costs
- Access to distribution channels
- Product differentiation
- Economies of scale-independent cost advantges
- Government policy
9
Q
Determinants of rivalry among existing competitors:
A
- Concentration
- Diversity of competitors
- Slow industry growth
- Differentiation
- Excess capacity and exit barriers
- Cost conditions: scale economies and the ratio of fixed to variable costs
10
Q
Price-sensitivity of buyers:
A
- Product‘s share of total costs
- Profitability of buyers
- Buyers‘ expectation on quality and differentiation of products
11
Q
Bargaining power of buyers:
A
- Size and concentration of buyers
- Buyers pose a credible threat of backward integration
- Switching costs
- Availability of information for buyers
- Social movements and buying power
12
Q
Determinants of bargaining power of suppliers:
A
- Market is dominated by a few companies
- The supplier groups‘ products are differentiated and inimitable
- No threat of substitutes
- Credible threat of forward integration by suppliers
- Industry is not an important customer of the supplier
