CBAC102 - MIDTERMS

Threat of New Entry, Buyer Power, Threat of Substitution, Supplier Power, Competitive Rivalry

Porter’s Five Forces

Threat of New Entry

new businesses in the market; depends on their resources

Buying Power

studying the behavior of buyers

Threat of Substitution 

an indirect competitor 

Threat of Substitution

provides the same purpose as your product

Supplier Power

the need to build a strong partnership with your supplier

Supplier Power

has the competitive advantage, and is capable of cutting costs and recommending better quality of materials

Competitive Rivalry/Rivalry among Existing Competitors

direct competitors and offers the same structure, products, and services

Competitive Profile Matrix

a tool that compares the firm and its rivals, and reveals their relative strengths and weaknesses

Strategic Types

a category of firms based on common strategic orientation and a combination of structure, culture, and processes consistent with that strategy

Defenders

companies with a limited product line that focus on improving the efficiency of their existing operations.

Defenders

focuses more on operational efficiency

Prospectors

are companies with fairly broad product line that focus on product innovation and market opportunities

Analyzers

are corporations that operate in at least two different product-market areas

Reactors

are corporations that lack a consistent strategy-structure-culture relationship

Reactors

only reacts based on the impact of competitors

Hyper-Competition 

the frequency, boldness, and aggressiveness of dynamic movement by the players accelerates to create a condition of constant disequilibrium and change

Hyper-Competition

not a category but demonstrates aggressiveness

Extrapolation 

is the extension of present trends into the future 

Extrapolation

commonly used; using present data to forecast future events 

Brainstorming 

is a non-quantitative approach that requires simply the presence of people with some knowledge of the situation to be predicted 

Expert Opinion

is a non-quantitative technique in which experts in a particular area attempt to forecast likely developments 

Expert Opinion 

considers personal experience and compares the forecast and actual 

Delphi Technique 

in which separate experts independently assess the likelihood of specified events 

Delphi Technique 

separate and independent experts 

Statistical Modelling 

is a quantitative technique that attempts to discover causal or explanatory factors that link two or more series together

Prediction Markets

is a recent forecasting technique enabled by easy access to the interest

Prediction Markets

companies conducting online surveys and using algorithms to forecast 

Scenario Writing 

are focused descriptions of different likely futures presented in a narrative fashion 

Scenario Writing

very detailed, well-described, and easier for readers to comprehend