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34 Cards in this Set
- Front
- Back
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General Environment |
Is composed of dimensions in the broader society that influence an industry and the firms within it. |
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Industry Environment |
The set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms. |
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Competitor Analysis |
How companies gather and interpret information about their competitors is called. |
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Opportunity |
Is a condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness. |
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Threat |
A condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness. |
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Demographic Segment |
Concerned with a population's size, age structure, geographic distribution, ethnic mix, and income distribution. |
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Economic Environment |
Refers to the nature and direction of the economy in which a firm competes or may compete. |
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Political/Legal Segment |
Is the arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies. |
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Sociocultural Segment |
Concerned with a society's attitudes and cultural values. |
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Technological Segment |
Includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes, and materials. |
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Global Segment |
Includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets. |
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Physical Environment Segment |
Refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to and deal with those changes. |
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Industry |
A group of firms producing products that are close substitutes. |
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Strategic Group |
Set of firms emphasizing similar strategic dimensions and using a similar strategy. |
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Competitor Intelligence |
The set of data and information the firm gathers to better understand and anticipate competitors' objectives, strategies, assumptions, and capabilities. |
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Complementors |
Companies or networks of companies that sell complementary goods or services that are compatible with the focal firm's good or service. |
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Parts of the General Environment |
1. Economic 2. Physical 3. Sociocultural 4. Global 5. Technological 6. Political/Legal 7. Demogrpahic |
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Parts of the Industry Environment |
1. Threat of New Entrants 2. Power of Suppliers 3. Power of Buyers 4. Product Substitutes 5. intensity of Rivalry |
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Demographics |
1. population size 2. age structure 3. geographic distribution 4. ethnic mix 5. income distribution |
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Economics |
1. inflation rates 2. interest rates 3. trade deficits or surpluses 4. budget deficits or surpluses 5. personal savings rates 6. business savings rates 7. GDP |
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Political/legal |
1. Antitrust laws 2. Taxation laws 3. Deregulation philosophies 4. Labor training laws 5. Educational philosophies and policies |
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Socicultural |
1. Women in the workforce 2. Workforce diversity 3. Attitudes toward the quality of work life 4. Shifts in career preferences 5. shifts in product and service preferences |
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Technological |
1. product innovations 2. applications of knowledge 3. focus of private and gov't supported R&D 4. new communication technologies |
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Global |
1. Important political events 2. critical global markets 3. newly industrialized countries 4. different cultural and institutional attributes |
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Physical |
1. Energy consumption 2. practices used to develop energy sources 3. renewable energy efforts 4. minimizing a firm's environmental impact 5. availability of water 6. producing environmentally friendly products 7. reacting to natural or man-made disasters |
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Parts of the Enteral Environment Analysis |
1. Scanning 2. Monitoring 3. Forecasting 4. Assessing |
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Scanning |
Entails the study of all segments in the general environment. Allows companies to identify early signals of environmental changes and trends. |
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Monitoring |
Detecting meaning through ongoing observations of environmental changes and trends |
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Forecasting |
Developing projections of anticipated outcomes based on monitored changes and trends |
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Assessing |
Determining the timing and importance of environmental changes and trends for firms' strategies and their management |
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Barriers to Entry |
1. Product differentiation 2. capital requirements 3. switching costs 4. access to distribution channels 5. cost disadvantages independent of scale 6. government policy |
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Suppliers are powerful when |
1. it is dominated by a few large companies 2. satisfactory substitute products are not available 3. industry firms are not significant customer for the supplier group 4. suppliers goods are critical to buyers
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Buyers are powerful when |
1. they purchase a large portion of an industry's total output 2. the sales of the product being purchased account for a significant portion of the seller's revenues 3. they could switch to another product at little to no cost 4. the industry products are undifferentiated |
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Intensity of Rivalry among Competitors |
1. Numerous or equally balanced competitors 2. Slow industry growth 3. High fixed costs or high storage costs 4. lack of differentiation or low switching costs 5. high strategic stakes 6. high exit barriers
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