week 21 Flashcards
what does a financial analyst do
unpick financial reports to understand the economic reality
what determines company performance
economic environment
government policy
accounting rules and regulation
corporate law
what are the porters five forces
rivalry amongst existing firms
threat of new entrants
threat of substitute products
bargaining power of buyers
bargaining power of suppliers
how is there rivalry amongst existing firms
entering price wars
improving service
advertising
what are the porters five forces
rivalry amongst existing firms
threat of new entrants
threat of substitute products
bargaining power of buyers
bargaining power of suppliers
how is there threat of new entrants
extra competition leads to lower prices and profits
discourage new competition through barriers to entry
how is there threat of substitute products
customers move to alternatives if it is easy and cheap to do so
it is cheaper to buy from an alternative source
what is bargaining threat of buyer power
buyers demand lower prices if they have bargaining power
what is bargaining power of suppliers
suppliers charge higher prices if they have a monopoly or offer a differentiated product/service
what is competitive strategy analysis
understanding of what a company is trying to do and understanding of the factors which facilitate or limit it in doing so
what are the two strategies for a company to compete in a industry
cost leadership
differentiation
what is cost leadership
offering products with acceptable quality at a lower price to a broad range of customers
what is product differentiation
characteristics that make your product stand out to its audience
