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88 Cards in this Set
- Front
- Back
The Company’s Macroenvironment
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Demographic-populations in terms of size, density, location, age, gender, race, occupation
Economic-affect consumer purchasing power and spending patterns. Natural-natural resources needed as inputs by marketers or that are affected by marketing activities. |
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The Company’s Macroenvironment
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Technological
Political Cultural |
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SWOT Analysis
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strengths
weaknesses opportunities threats |
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SWOT Internal
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Strengths
Weaknesses |
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SWOT External
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Opportunities
Threats |
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SWOT Strengths
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Image, awareness, costs, location, expertise, history, employees, etc.
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SWOT Weaknesses
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Create
Improve Acknowledge |
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Core Competencies meets 3 criteria:
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1.Potential access to a wide variety of markets
2.Make a significant contribution to the perceived customer benefits of the end product. 3.Difficult for competitors to imitate. |
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Marketing Environment
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actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers.
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Company’s Internal Environment
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functional areas inside a company that have an impact on the marketing department’s plans.
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Suppliers
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provide the resources needed to produce goods and services.
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Marketing Intermediaries
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help the company to promote sell, and distribute its goods to final
buyers. |
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What is Marketing
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the analysis of customers, competitors, and a company
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Consumers’ Needs
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Physical:
Food, clothing, shelter, safety Social: Belonging, affection Individual: Learning, knowledge, self-expression |
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Consumers wants
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Wants - form that a human need takes, as shaped by culture and individual personality.
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Consumers Demands
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Wants + Buying Power = demand
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What is a Market
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The set of actual and potential buyers of a product.
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Production Concept
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Consumers favor products that are
available and highly affordable. Improve production and distribution. |
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Product Concept
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Consumers favor products that provide
the greatest benefits at the least cost. |
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Selling Concept
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Consumers will buy products only if
the company promotes/sells these products (they must be aware). |
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Marketing Concept
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Focuses on needs/wants of target
markets & delivering satisfaction better than competitors. |
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Societal Marketing Concept
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Focuses on needs/wants of target
markets & greatest overall benefits vs. cost (corporate and societal). |
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Marketing Myopia
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Sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products.
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The Marketing Concept
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Starting Point:
Market Focus: Customer Needs Means: Integrated Marketing Ends: Profits through Satisfaction |
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Criticisms Leveled about Marketing
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High Prices
Deceptive Practices Shoddy Unsafe Products Planned Obsolescence |
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Marketing’s Impact on high prices
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High
Costs of Distribution High Advertising And Promotion Costs Excessive Markups |
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Deceptive
Pricing |
Falsely Advertising “Factory” or “Wholesale” Prices
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Deceptive
Promotion |
Overstating the Product’s Features, Luring Customers to the Store for Out-of-Stock Bargains
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Deceptive
Packaging |
Exaggerating Package Contents, Not Filling Package to the Top, Using Misleading Labeling
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Reasons for Planned Obsolescence
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IncreasedSales
ReducedService CompetitiveAdvantage |
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Marketing’s Perceived
Negative Impact on Society |
False” Wants & Too
Much Materialism Producing Too Few Social Goods Cultural Pollution Too Much Political Power |
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Sustainability
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the idea that marketing firms can help improve society and the environment by leaving things better than when you started
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The Consumer Bill of Rights (1962) Provisions
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Right to Safety
Right to Be Informed Right to Choose Right to Be Heard Right to Consumer Education Right to Recourse and Redress Right to an Environment That Enhances the Quality of Life |
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Strategic Planning
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Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Changing Market Opportunities.
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Good Mission Statement:
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Market Oriented
Realistic Specific Fit Market EnvironmentDistinctive Competencies Motivating |
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Marketing Objective
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A statement of what is to be accomplished through marketing activities.
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Marketing Objectives Must Be:
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Realistic
Measurable Time specific Consistent with and indicate the organization’s priorities |
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Analyzing Current Products: Boston Consulting Group Approach [BCG]
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Stars
Cash Cows Question Marks Dogs |
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Stars
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High growth & share
Profit potential May need heavy investment to grow |
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Question Marks
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High growth, low share
Build into Stars or phase out Require cash to hold market share |
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Cash Cows
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Low growth, high share
Established, successful SBU’s Produce cash |
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Dogs
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Low growth & share
Low profit potential |
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Market Penetration:
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Increasing sales to current customers without changing products.
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Market Development:
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Finding new
markets for current products. |
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Product Development:
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Develop modified or new products for current markets.
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Diversification:
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Create new products for new markets.
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Steps in Strategic Planning
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1. Analyzing the Company
2. Analyzing the Competition 3. Analyzing the Customer |
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Market Segmentation
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Determining distinct groups of buyers (segments) with different needs, characteristics, or behavior.
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The 3 C's
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Company
Competition Customer |
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Targeting
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Evaluating each segment’s attractiveness and selecting one or more segments to enter.
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Positioning
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Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products
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The 4 P’s
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Product
Price Place [Dist] Promotion |
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Marketing Plan Elements:
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Business Mission Statement
Objectives Situation or SWOT Analysis (3C’s) Marketing Mix (4P’s) ImplementationEvaluationControl |
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Exploratory Research
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Gathers preliminary information
that will help define the problem and suggest hypotheses. Often uses observations. |
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Descriptive Research
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Describes things such as
market potential for a product or demographics and consumers’ attitudes. Often uses surveys. |
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Causal Research
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Test hypotheses about cause-
and-effect relationships. Typically uses experiments. |
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Secondary Research
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Information That Already Exists Somewhere.
Obtained More Quickly, Lower Cost. Might Not be Usable Data. |
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Primary Research
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Information Collected for the Specific Purpose at Hand.
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Research Plan Must Be:
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Relevant
Accurate Current Impartial |
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Sample
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A subset from a large population.
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Universe
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The population from which
a sample will be drawn. |
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Probability Sample
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A sample in which every element in
the population has a known statistical likelihood of being selected. |
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Random Sample
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A sample arranged so that every element of the population has an equal chance of being selected.
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Nonprobability Sample
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Any sample in which little or
no attempt is made to get a representative cross-section of the population. |
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Convenience Sample
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A form of nonprobability sample
using respondents who are convenient or readily accessible to the researcher. |
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Implementing the Research Plan
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Collecting the
Data + Processing the Data + Analyzing the Data = Research Plan |
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Interpreting and Reporting Findings
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Step 1. Interpret the Findings
Step 2. Draw Conclusions Step 3. Report to Management |
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Marketing Research Process
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Step 1. Defining the Problem & Research Objectives
Gathering Secondary and/or Primary Data Step 3. Implementing the Research Plan Step 4. Interpreting and Reporting Findings |
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Marketing Environment
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the actors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships
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The Company’s Microenvironment
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Company’s Internal Environment
Suppliers Marketing Intermediaries Customers Competitors Publics |
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Company’s Internal Environment
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functional areas inside a company that have an impact on the marketing department’s plans.
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Suppliers
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provide the resources needed to produce goods and services
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Marketing Intermediaries
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help the company to promote, sell, and distribute its goods to final buyers.
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Customers
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five types of markets that purchase a company’s goods and services
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Competitors
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those who serve a target market with similar products and services against whom a company must gain strategic advantage
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Publics
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any group that perceives itself having an interest in a company’s ability to achieve its objectives.
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Types of Customer Markets for company
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Consumer Markets
Business Markets Reseller Markets Government Markets International Markets |
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Types of Publics for company
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Financial Publics
Media Publics Government Publics Citizen Action Publics Local Publics General Public Internal Publics |
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Steps in Analyzing Competitors
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Identifying the company’s competitors
Assessing competitor’s objectives, strategies, strengths and weaknesses, and reaction patterns Selecting which competitors to attack or avoid |
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Primary demand
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Primary demand for a product is the total demand for all brands in a product category
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Secondary demand
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Secondary demand is the demand for a given brand in a category
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Categorization
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Categorization is necessary to generate primary demand
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Types of Competitive Advantage
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Cost
Product/Service Differentiation Niche Strategies |
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Cost Competitive Advantage
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Being the low-cost competitorin an industry while maintaining satisfactory profit margins.
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Product/Service Differentiation Competitive Advantage
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Advantage achieved when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than the competition.
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Niche Competitive Advantage
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Advantage achieved when a firm seeks to target and effectively serve a small segment or sub-segment of the market.
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More SWOT Analysis
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Opportunities :Customer Needs Unfulfilled
Attractive Competitor Weaknesses Threats: Unhappy Customers Market Changes (Macroenvironment) Employee/Supplier/Reseller/Cost changes (Micro) Distinctive Capabilities vs. Competitor |
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Porter’s Five Forces
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Barriers to Potential Entrants
Bargaining Power of Suppliers Bargaining Power of Buyers Substitutes in Other Industries Barriers to exit |