Introduction: In 1979, Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist and associate professor, Michael E. Porter. It was his first HBR article, and it started a revolution in the strategy field. In subsequent decades, Porter has brought his signature economic rigor to the study of competitive strategy for corporations, regions, nations, and, more recently, health care and philanthropy. “Porter’s five forces” have shaped a generation of academic research
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to force industry prices down ← Threat depends on the height of barriers to entry ← Examples of entry barriers: ← Economies of scale - entrant must either enter on a large scale or accept a cost disadvantage ← Differentiation - brand identification and customer loyalty has to be overcome ← Capital requirements - how much finance is needed to enter and compete? ← Cost disadvantages independent of size - the learning curves, access to cheap labour, patents etc. ← Access
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apartment. 3. Beach public workout place. 4. Stadium (a place which can play basketball, football and so on.) | - No close substitutes for the main products/services of the industry so that customers are comparatively insensitive to price- Switching costs for customers are quite high | - Close substitutes exist: customers will switch to substitutes in response to price increases. Examples:- less expensive products that serve a similar purpose (e.g. plastic containers instead of aluminum) are
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THE EXTERNAL AND INTERNAL ENVIRONMENTS If managers in the airline industry are going to run their organizations efficiently, they have to understand the external environment confronting them, anticipate how changes in the environment might affect the profitability of their airlines, and take appropriate actions. These actions might include reducing capacity as demand declines, purchasing more fuel-efficient jets, avoiding price wars with low-cost airlines if possible, and reducing labor costs. At
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Importance of volume to supplier * Differentiation of inputs * Impact of inputs on cost or differentiation * Switching costs of firms in the industry * Presence of substitute inputs * Threat of forward integration * Cost relative to total purchases in industry Buyer power * Bargaining leverage * Buyer volume * Buyer information * Brand identity * Price sensitivity * Threat of backward integration * Product differentiation * Buyer concentration
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Strategy & Technology a gallaugher.com chapter provided free to faculty & students for non-commercial use © Copyright 1997-2008, John M. Gallaugher, Ph.D. – for more info see: http://www.gallaugher.com/chapters.html Last modified: Sept. 13, 2008 Note: this is an earlier version of the chapter. All chapters updated after July 2009 are now hosted (and still free) at http://www.flatworldknowledge.com. For details see the ‘Courseware’ section of http://gallaugher.com INTRODUCTION Managers
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WAC REPORT ON THE CASE LARSON IN NIGERIA Su bmitted To Submitted On Submitted By : : : Prof. Sanjay Kumar Gupta 06 th September, 2012 Samarth Mewada-20121048 To : David From : Steven Date : 06.09.2012 SUB: - Detail analysis report to choose the course of action for future prospects in Nigeria Dear David, The Business situation in Nigeria has been analysed with reverence to present situation and future escalation. The report contains the options and the options are evaluated on
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Purpose of External Environmental Analysis Organizations are affected by conditions in the environment Managers need to be aware of these conditions in order to – Take advantage of opportunities that can lead to higher profits – Reduce the impact of threats that can harm the organization’s future The external environment is made up of: 1. Macro environment 2. Industry environment 3. Competitive environment So if a company wants to analyse its external environment it must analyse
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strength of the 5-forces determines the profit potential of an industry .. Or industry attractiveness - Time and cost of entry - Specialized knowledge - Technology protection - Brand identity - Switching costs - Number and size - Uniqueness - Switching cost - Substitute inputs - Substitute performance - Switching cost - Industry growth - Number of competitors - Quality/price differences -
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Case D M-COMMERCE Q1. What is the 8-second rule and why is it important to m-commerce technology? The 8-second rule is an old way of measuring the adequate response time of a webserver through different bandwidth connections, the average web user will wait about eight seconds for a page to download, but that current average download time across backbone connection on most web sites is almost ten seconds. If the load time of a webpage is more than 8 seconds, users will have no patience to wait
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