Professional Documents
Culture Documents
Economic Segment
Political/legal segment
Antitrust laws Labor laws Taxation laws Educational Deregulation philosophy philosophies GAAR Product safety / liability
Technological segment
Global segment
Entry Barriers
Scale Economies Product differentiation Capital requirements Switching costs Distribution access Cost disadvantages independent of scale (proprietary product technology, raw material access, locations, subsidies, Govt. policies Expected retaliation
Entry Barriers
Slow Industry Growth High fixed / storage costs Lack of differentiation and low switching costs Capacity Augmentation (PVC) Diverse competition High strategic stakes High exit barriers and Mobility barriers
Strategic Groups
A group of firms in an industry following the same or similar strategy along the same strategic dimensions
Background
Subset of industry analysis Developed in early 1970s Porters Competitive Strategy: Techniques for Analyzing Industries and Competitors in 1980
The Five Forces jointly determine the profitability of the industry, the groups in the industry and individual companies within the groups
Strengths
Comprehensiveness Helpful in dealing with fast-changing environment Encourages finding new ideas and strategies More accurate strategic analysis
Weaknesses
Provides little guidance on implementation Depends on identifying the strategically important dimensions Requires in-depth industry knowledge and experience Does not incorporate importance of government and social issues
Eastern
Delta
Geographic Scope
USAir Southwest
Frontier PSA
Kiwi
Reno Air
America West
Regional
Texas Intl
Others
No Frills
No Frills
Full Service
Quality of Service
Quality of Service
Competitive Intelligence
Future Objectives Goal Comparisons Future Emphasis Attitude towards risk
Current Strategy How are we currently competing? Does the strategy support changes in the competitive structure?
Assumptions Is the future volatile? Are we operating under a status quo? What assumptions do the competitors hold about the industry and themselves?
Capabilities Strengths/weaknesses Rating compared to competitors
Response Competitors future actions Future competitive advantage How will the relationship change