industry and competitive analysis(英文版).ppt

INDUSTRY AND COMPETITIVE ANALYSIS,CHAPTER 2,“Analysis is the critical starting point of strategic thinking.”,,Chapter Outline,Role of Situation Analysis in Strategy-Making Methods of Industry and Competitive Analysis Industry’s Dominant Economic Traits Industry’s Competitive Forces Drivers of Industry Change Competitive Positions of Rivals Competitive Moves of Rivals Key Success Factors Conclusions: Overall Industry Attractiveness Conducting an Industry and Competitive Analysis,Good Situation Analysis Leads to Good Strategic Choices,Identify Strategic Options for the Company,Select the Best Strategy for the Company,- Competitive/Business Unit Options Chapter 4 & other Chapters,Question 1: What Are the Industry’s Dominant Economic Traits?,Market size and growth rate (Scope of competitive rivalry) Number of competitors and their relative sizes Prevalence (流行） of backward/forward integration Entry/exit barriers Nature and pace of technological change Product and customer characteristics Scale economies and experience curve effects Capacity utilization and resource requirements (Industry profitability),The Experience Curve Effect,An experience curve exists when unit costs decline as cumulative production volume increases because of Accumulating production know-how Growing mastery of the technology The bigger the experience curve effect, the bigger the cost advantage of the firm with the largest cumulative production volume,Cost Advantages of Different Experience Curve Effects,,,,,,,,,,,,,,,,,,,,,,,,,,,,,$1,$1,.90,.80,.70,.81,.64,.49,.729,.512,.343,10% Cost Reduction,20% Cost Reduction,30% Cost Reduction,1 Million Units,2 Million Units,4 Million Units,8 Million Units,Cost per Unit,Relevance of Key Economic Features,Question 2: What is Competition Like & How Strong Are the Competitive Forces?,To identify Main sources of competitive forces Strength of these forces Key analytical tool Five Forces Model of Competition,Objective,Five Forces Model of Competition,Substitute Products (of firms in other industries),Rivalry Among Competing Sellers,Potential New Entrants,Suppliers of Key Inputs,Buyers,,,,,,,Analyzing the Five Competitive Forces: How to Do It,Assess strength of each competitive force (Strong? Moderate? Weak? ) Rivalry among competitors Substitute products Potential entry Bargaining power of suppliers Bargaining power of buyers Explain how each force acts to create competitive pressure Decide whether overall competition is brutal, fierce, strong, normal/moderate, or weak and how can influence future performance of the competing companies,Rivalry Among Competing Sellers,Usually the most powerful of the five forces Check which weapons of competitive rivalry are most actively used by rivals in jockeying（嗣机寻找） for position Price Quality Performance features offered Customer service Warranties/guarantees Advertising/promotions Dealer networks Product innovation,What Causes Rivalry to Be Stronger?,Slow market growth Costs more to get out of business than to stay in (Exit barriers) Industry conditions tempt（诱惑） some firms to go on the offensive to boost volume and market share (Scale Economies or Learning Curve to be achieved) A successful strategic move carries a big payoff（决定性招数） One or more firms initiates moves to bolster（支持） their standing at expense of rivals Customers have low costs in switching brands Lots of firms, more equal in size and capability Firms have diverse strategies, corporate priorities, resources, and countries of origin,Competitive Force of Potential Entry,Seriousness of threat depends on Attractiveness of the industry for the new entrant Barriers to entry Reaction of existing firms to entry Barriers exist when Newcomers confront obstacles Economic factors put potential entrant at a disadvantage relative to incumbent firms,Common Barriers to Entry,Economies of scale Inability to gain access to specialized technology Existence of learning/experience curve effects Strong brand preferences and customer loyalty Capital requirements and/or other specialized resource requirements Cost disadvantages independent of size Access to distribution channels Regulatory policies, tariffs, trade restrictions,Principle of Competitive Markets,Threat of entry is stronger when: Entry barriers are low Sizable pool of entry candidates exists Incumbents are unwilling or unable to contest a newcomer’s entry efforts Newcomer can expect to earn attractive profits,Competitive Force of Substitute Products,Substitutes matter when customers are attracted to the products of firms in other industries,Concept,Eyeglasses vs. Contact Lens Sugar vs. Artificial Sweeteners Plastic vs. Glass vs. Metal Newspapers vs. TV vs. Internet,Examples,How to Tell Whether Substitute Products Are a Strong Force,Sales of substitutes are growing rapidly Producers of substitutes are planning to add new capacity Their profits are up (their capability to produce them with best quality and minor prices increases),Principle of Competitive Markets,T。