Business Strategy Exam 1

industry analysis

a systematic assessment of a firms environment (comp landscape) to determine the areas impacting a firms profit and competitiveness

whats included in the external analysis?

5 forces

industry life cycle

macro forces/pest

5 forces model

1. threat of entry

2. power of suppliers: Influence suppliers have on prices and quality.

3. power of buyers: pricing

4. threat of substitutes

5. rivalry among existing competitors

industry life cycle

1. Introduction

2. Growth: Demand rises, competition increases.

3. Shakeout= weak comp leaves, strong ones dominate

4. Maturity: Market stabilizes, competition peaks.

5. Decline

why is it important?

knowing where an industry stands in tht lifecycle to help make strategic decision

S-curve

reps growth patterns within an inudustry

Macroforces= PEST

political: gov policies, regulations

economic: inflation, unemployment

socio-cultural; social trends, demographic

technology: advancements in tech

what goes in the internal analysis?

RBV/VRIO

dynamic capabilities

Value chain

RBV

Idea that resources and capabilities are primary drivers of competitive advantage

Resources

what you have

capabilities

knowing how to use those resources

VRIO analysis

Valuable

Rare

Difficult to Imitate

Organized to capture value= company has the right systems, processes, and structure in place to take full advantage of its valuable, rare, and hard-to-imitate resource

dynamic capabilities

organization's ability to integrate, build, reconfigure,

and change capabilities to address rapidly changing

environments.

why is it important

focuses on how an org can adapt to shit

Value chain

process of activities, sequential activities that adds value.

2 type of activities in VALUE CHAIN

1. primary activities= core to generating revenue

2. support activities= human activities that does shit