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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
