wk 2 - Industry analysis

Question 1

What is the first thing you do when forming a strategy

Answer 1

analyse the forces that shape the competition
- understand opportunities and threats

Question 2

What is Macro environment

Answer 2

The broader economic, technical, demographic, social and political context

Question 3

what is micro environment

Answer 3

the industry environment.
competitors, customers, distribution channels, suppliers

Question 4

What is the industry Environment

Answer 4

lies at the core of the macro environment
- demographics, social, technological, political structure

Question 5

Define industry

Answer 5

A group of companies offering products or services that are close substitutes for each other - satisfy the same basic needs

Question 6

Value creation

Answer 6

For a firm to make profit, it must create value for customers = must understand customers, suppliers and competitors

Question 7

What is the industry environment made up of

Answer 7

Customers
Suppliers
Competitors

Question 8

What are the objectives of Industry Analysis

Answer 8

• Understand how industry structure drives competition = determines profitability
• Assess industry attractiveness
• forecast future profitability
• formulate strategies to change industry structure to improve profitability
• identify key success factors