Structural determinants of the intensity of competition (pag 5)
Forces driving industry competition
- Industry competitors (rivalry among existing firms)
- Potential entrants (threat of new entrants)
- Substitutes (threat of substitute products)
- Suppliers (bargaining power of suppliers)
- Buyers (bargaining power of buyers)
Threat of entry
? Six barriers to entry:
- economies of scale
- product differentiation
- capital requirements
- switching costs
- access to distribution channels
- cost disadvantages independent of scale
- government policy
? Expected retaliation (fight back)
? The entry deterring price
Structural analysis and competitive strategy
Positioning – build defense against competitive forces or find positioning where compettive forces are weak
Influencing the balance – take the offensive, influence competitive forces
Exploiting change – envisage industry evolution
Chapter 2 – generic competitive strategies
Three generic strategies
? overall cost leadership
? differentiation
? focus (niche)
Risks of the three generic strategies... displayed 300 characters
Custom written essay
All essays are written from scratch by professional writers according to your instructions and delivered to your email on time. Prices start from $10.99/page
Your research paper is written by certified writers
Your requirements and targets are always met
You are able to control the progress of your writing assignment
You get a chance to become an excellent student!
Get a price guote
Structural determinants of the intensity of competition (pag 5)
Forces driving industry competition
- Industry competitors (rivalry among existing firms)
- Potential entrants (threat of new entrants)
- Substitutes (threat of substitute products)
- Suppliers (bargaining power of suppliers)
- Buyers (bargaining power of buyers)
Threat of entry
? Six barriers to entry:
- economies of scale
- product differentiation
- capital requirements
- switching costs
- access to distribution channels
- cost disadvantages independent of scale
- government policy
? Expected retaliation (fight back)
? The entry deterring price
Structural analysis and competitive strategy
Positioning – build defense against competitive forces or find positioning where compettive forces are weak
Influencing the balance – take the offensive, influence competitive forces
Exploiting change – envisage industry evolution
Chapter 2 – generic competitive strategies
Three generic strategies
? overall cost leadership
? differentiation
? focus (niche)
Risks of the three generic strategies... displayed 300 characters
