Strategic Positioning and Industry Analysis

Flashcards covering key concepts related to strategic positioning, industry analysis, and business strategy frameworks.

Five Forces Framework

A model developed by Michael Porter that analyzes the competitive forces within an industry, including the threat of new entrants, bargaining power of suppliers and buyers, the threat of substitutes, and the rivalry among existing firms.

Key Success Factors

Elements that are vital for a company to achieve its mission and objectives, which can be identified through customer requirements and competition analysis.

VRIO Framework

A tool for analyzing a firm's resources and capabilities to determine their potential for providing a sustainable competitive advantage, factoring in Value, Rarity, Inimitability, and Organization.

External Environment Analysis

Assessment of factors such as the macro-environment, industry dynamics, and competitive landscape that influence an organization’s strategic positions.

Resource-Based View

An approach to business strategy that suggests that the resources and capabilities of a firm are the primary sources of competitive advantage.

Market Segmentation

The process of dividing a broad consumer or business market into sub-groups of consumers based on shared characteristics.

Threat of New Entrants

Assessment of the barriers to entry that new competitors face in entering an industry, which can affect competition and profitability.

Bargaining Power of Suppliers

The influence suppliers have on the price and quality of materials provided to firms, impacting their competitive position.

Bargaining Power of Buyers

The ability of buyers to affect the price they pay for a product or service, potentially impacting profit margins for companies.

Threat of Substitutes

The likelihood that customers will switch to alternative products or services that meet their needs.

Industry Life Cycle

The stages through which an industry progresses: introduction, growth, maturity, and decline.

Competitor Analysis

The process of identifying and evaluating the strengths and weaknesses of current and potential competitors.

Resource Identification

The examination of a firm's assets, capabilities, and resources, both tangible and intangible, that contribute to its strategic advantage.

Organizational Capabilities

The skills and abilities of an organization to utilize its resources effectively to achieve its goals and objectives.

Differentiation Strategy

A business strategy aimed at developing unique products or services to attract customers and achieve competitive advantage.

Cost Leadership Strategy

A strategy that aims to become the lowest-cost producer in an industry, gaining market share through lower pricing.