MGT 4090 Management Policy & Strategy Week 3 Session 1: External Analysis

A set of flashcards covering key concepts from the lecture on external analysis in management policy and strategy.

Porter’s Five Forces Model

A framework for analyzing the competitive forces within an industry.

Rivalries

The intensity with which companies in the same industry compete for market share and profitability.

Industry Structure

An assessment of the number and size of competitors, the firm's pricing power, type of products and services, and entry barriers.

Strategic Commitments

Firm actions that are costly, long-term oriented, and difficult to reverse.

Exit Barriers

Obstacles that determine how easily a firm can leave an industry.

Compliments

Products or services that add value when used alongside the original product, increasing demand.

Co-opetition

Cooperation among competitors to achieve a strategic objective.

PESTEL Factors (models)

Political, Economic, Sociocultural, Technological, Ecological, and Legal factors that can affect the external environment.

Strategic Groups

A set of companies that pursue a similar strategy within the same industry.

Industry Growth

The rate at which an industry is expanding or contracting, affecting competition dynamics.

Cost Leader

A company that seeks to become the lowest cost producer in its industry, enabling it to offer lower prices than competitors.

Differentiator

A company that seeks to offer unique products or services that are distinct from competitors, allowing it to charge premium prices. Increasing its perceived value as well.