INDUSTRY AND COMPETITIVE ANALYSIS(英文版)(ppt 32頁).PPT

1、INDUSTRY AND COMPETITIVE ANALYSIS,CHAPTER 2,“Analysis is the critical starting point of strategic thinking.”,Chapter Outline,Role of Situation Analysis in Strategy-Making Methods of Industry and Competitive Analysis Industrys Dominant Economic Traits Industrys Competitive Forces Drivers of Industry

2、Change Competitive Positions of Rivals Competitive Moves of Rivals Key Success Factors Conclusions: Overall Industry Attractiveness Conducting an Industry and Competitive Analysis,Good Situation Analysis Leads to Good Strategic Choices,Identify Strategic Options for the Company,Select the Best Strat

3、egy for the Company,- Competitive/Business Unit Options Chapter 4 & other Chapters,Question 1: What Are theIndustrys Dominant Economic Traits?,Market size and growth rate (Scope of competitive rivalry) Number of competitors and their relative sizes Prevalence (流行） of backward/forward integration Ent

4、ry/exit barriers Nature and pace of technological change Product and customer characteristics Scale economies and experience curve effects Capacity utilization and resource requirements (Industry profitability),The Experience Curve Effect,An experience curve exists when unit costs decline as cumulat

5、ive production volume increases because of Accumulating production know-how Growing mastery of the technology The bigger the experience curve effect, the bigger the cost advantage of the firm with the largest cumulative production volume,Cost Advantages ofDifferent Experience Curve Effects,$1,$1,.90

6、,.80,.70,.81,.64,.49,.729,.512,.343,10% Cost Reduction,20% Cost Reduction,30% Cost Reduction,1 Million Units,2 Million Units,4 Million Units,8 Million Units,Cost per Unit,Relevance ofKey Economic Features,Question 2: What is Competition Like & How Strong Are the Competitive Forces?,To identify Main

7、sources of competitive forces Strength of these forces Key analytical tool Five Forces Model of Competition,Objective,Five Forces Model of Competition,Substitute Products (of firms in other industries),Rivalry Among Competing Sellers,Potential New Entrants,Suppliers of Key Inputs,Buyers,Analyzing th

8、e Five Competitive Forces: How to Do It,Assess strength of each competitive force (Strong? Moderate? Weak? ) Rivalry among competitors Substitute products Potential entry Bargaining power of suppliers Bargaining power of buyers Explain how each force acts to create competitive pressure Decide whethe

9、r overall competition is brutal, fierce, strong, normal/moderate, or weak and how can influence future performance of the competing companies,Rivalry Among Competing Sellers,Usually the most powerful of the five forces Check which weapons of competitive rivalry are most actively used by rivals in jo

10、ckeying（嗣機尋找） for position Price Quality Performance features offered Customer service Warranties/guarantees Advertising/promotions Dealer networks Product innovation,What Causes Rivalry to Be Stronger?,Slow market growth Costs more to get out of business than to stay in (Exit barriers) Industry con

11、ditions tempt（誘惑） some firms to go on the offensive to boost volume and market share (Scale Economies or Learning Curve to be achieved) A successful strategic move carries a big payoff（決定性招數(shù)） One or more firms initiates moves to bolster（支持） their standing at expense of rivals Customers have low cost

12、s in switching brands Lots of firms, more equal in size and capability Firms have diverse strategies, corporate priorities, resources, and countries of origin,Competitive Force of Potential Entry,Seriousness of threat depends on Attractiveness of the industry for the new entrant Barriers to entry Re

13、action of existing firms to entry Barriers exist when Newcomers confront obstacles Economic factors put potential entrant at a disadvantage relative to incumbent firms,Common Barriers to Entry,Economies of scale Inability to gain access to specialized technology Existence of learning/experience curv

14、e effects Strong brand preferences and customer loyalty Capital requirements and/or other specialized resource requirements Cost disadvantages independent of size Access to distribution channels Regulatory policies, tariffs, trade restrictions,Principle of Competitive Markets,Threat of entry is stro

15、nger when: Entry barriers are low Sizable pool of entry candidates exists Incumbents are unwilling or unable to contest a newcomers entry efforts Newcomer can expect to earn attractive profits,Competitive Force ofSubstitute Products,Substitutes matter when customers are attracted to the products of

16、firms in other industries,Concept,Eyeglasses vs. Contact Lens Sugar vs. Artificial Sweeteners Plastic vs. Glass vs. Metal Newspapers vs. TV vs. Internet,Examples,How to Tell Whether Substitute Products Are a Strong Force,Sales of substitutes are growing rapidly Producers of substitutes are planning

17、to add new capacity Their profits are up (their capability to produce them with best quality and minor prices increases),Principle of Competitive Markets,The competitive threat of substitutes is stronger when they are: Readily available Attractively priced Believed to have comparable or better perfo

18、rmance features Customer switching costs are low,Competitive Force of Suppliers,Suppliers are a strong competitive force when: Item makes up large portion of product costs, is crucial to production process, and/or significantly affects product quality It is costly for buyers to switch suppliers They

19、 have good reputations and growing demand They can supply a component cheaper than industry members can make it themselves They do not have to contend (compete) with substitutes Buying firms are not important customers,Principle of Competitive Markets,Suppliers are a stronger force the more they can

20、 exercise power over: Prices charged Quality/performance of items supplied Amounts and delivery times,Competitive Force of Buyers,Buyers are a strong competitive force when: They are large and purchase a sizable percentage of industrys product They buy in volume quantities They can integrate backwar

21、d Industrys product is standardized Their costs in switching to substitutes or other brands are low They can purchase from several sellers Product purchased does not save buyer money,Principle of Competitive Markets,Buyers are a stronger competitive force the more they have leverage to bargain over:

22、 Price Quality Service Other terms and conditions of sale,Strategic Implications of theFive Competitive Forces,Competitive environment is unattractive when: Rivalry is strong Entry barriers are low Competition from substitutes is strong Suppliers and customers have considerable bargaining power,Stra

23、tegic Implications of theFive Competitive Forces,Competitive environment is ideal when: Rivalry is moderate Entry barriers are high Good substitutes do not exist Suppliers and customers are in a weak bargaining position,Question 3: What Forces Are atWork to Change Industry Conditions?,Industries cha

24、nge because forces are driving industry participants to alter their actions Driving forces are the major underlying causes of changing industry and competitive conditions,Analyzing Driving Forces,1. Identify those forces likely to exert greatest influence over next 1 - 3 years Usually no more than 3

25、 - 4 factors qualify 2. Assess impact What difference will the forces make (favorable? unfavorable?),Common Types of Driving Forces (I),Changes in long-term industry growth rate Changes in who buys the product and how they use it Product innovation Technological change/process innovation Marketing i

26、nnovation Entry or exit of major firms Diffusion(傳播） of technical knowledge,Common Types of Driving Forces (II),Increasing globalization of industry Changes in cost and efficiency Market shift from standardized to differentiated products (or vice versa) New regulatory policies and/or government legi

27、slation Changing societal concerns, attitudes, and lifestyles Changes in degree of uncertainty and risk,Question 7: Is the IndustryAttractive or Unattractive and Why?,Develop conclusions about whether the industry and competitive environment is attractive or unattractive, both near- and long-term, for earning good profits,Objective,Principle,A