Org n Man

Competitive Advantage

Unique strengths enabling a firm to outperform rivals (e.g., lower costs, superior quality).

Environmental Uncertainty

Lack of complete information about present/future business conditions.

Environmental Complexity

Numerous dynamic factors (political, economic, social, technological) affecting operations.

Industry

Group of firms offering similar products/services (e.g., shoe manufacturing industry).

Porter’s Five Forces

Porter's Five Forces is a framework to analyze competition in a market. The five forces are: 1) Threat of new entrants - ease of new competitors entering the market. 2) Bargaining power of suppliers - influence of suppliers on costs. 3) Bargaining power of buyers - influence of customers on prices. 4) Threat of substitutes - chance of customers finding alternative products. 5) Competitive rivalry - level of competition among current businesses.

Rivalry Among Existing Firms

Competition intensity in a market (e.g., many shoe brands leading to high rivalry).

Bargaining Power of Suppliers

Suppliers' control over input prices (e.g., few leather suppliers resulting in high power).

Bargaining Power of Buyers

Customer influence on prices (e.g., many shoe sellers giving buyers price-dictating power).

Threat of New Entrants

Potential competitors entering the market (e.g., easy market access increasing threat level).

Threat of Substitutes

Availability of alternative products that can replace existing offerings (e.g., sandals vs. sneakers).

Global Management

Managing operations across different countries (e.g., adapting to various foreign cultures).

Globalization

Growing interdependence among markets/countries (e.g., APEC, AFTA agreements).

E-commerce

Online business facilitated by technological platforms (e.g., Amazon, Lazada).

Cost Leadership

Competing by offering lower prices (e.g., budget airlines).

Quality Differentiation

Offering unique product features that distinguish a brand (e.g., Apple’s ecosystem).

Speed/Flexibility

Ability to provide rapid delivery and response (e.g., Zara’s fast fashion model).

Innovation

Introduction of new products or methods (e.g., Tesla’s electric vehicles).

Exporting/Importing

Selling local goods abroad (export) or acquiring goods from other countries (import).

Foreign Subsidiary

A fully owned branch located in a foreign country (e.g., Toyota USA).

Licensing

Granting rights to produce or sell a product (e.g., Disney licensing character images).

Franchising

Replicating a successful business model in different locations (e.g., Jollibee in the Middle East).

Joint Venture

Shared ownership and control of a business with a foreign partner (e.g., Sony-Ericsson).

Strategic Alliance

Cooperation between companies without equity involvement (e.g., Starbucks collaborating with Barnes & Noble).

APEC

Asia-Pacific Economic Cooperation, promoting free trade in the Asia-Pacific region.

AFTA

ASEAN Free Trade Agreement, reducing trade tariffs among Southeast Asian nations.

Access to Inputs

Availability of cheaper or more resources (e.g., outsourcing labor).

Lower Production Costs

Manufacturing in countries with lower wage rates (e.g., production in Vietnam).

Larger Markets

Expanding customer bases through international presence (e.g., Netflix's global streaming).

Corporate Social Responsibility (CSR)

A framework emphasizing ethical responsibilities toward people, planet, and profit.

People (Social Responsibility)

Focus on fair treatment of employees and community initiatives.

Planet (Environmental Responsibility)

Emphasizing reducing environmental impact and promoting sustainability.

Profit (Economic Responsibility)

Focus on ethical profitability that benefits stakeholders.

PEST Analysis

A tool to analyze Political, Economic, Social, and Technological factors affecting industries.

Extended Versions (PESTLE/PESTEL)

PEST analysis enhanced with Legal and Environmental factors.

Macro-Environmental Factors

Broad external forces impacting businesses beyond direct control.