Description
strategic management covers topics like industry Analysis and Dominant Economic Features and discusses key features
Industry Analysis
Dominant Economic Features
The factors to consider in profiling an industries Economic Features is fairly standard This is where analysis of industry and competition begins. Key features are: - Market size - scope of competitive rivalry - Market growth rate and position in Industry Life Cycle - Number of rivals and their relative sizes, fragmented, concentrated in clusters, dominated by few rivals - Number of buyers and their relative sizes - Extent to which rivals have backward or forward integration - Distribution channels used, type and extent, trade terms - Pace of technological changes in production process, innovation and new product introduction - Extent to which products and services of rival firms are differentiated - Extent to which rivals can realize economies of scale in purchasing, manufacturing, transportation, marketing or advertising - Whether industry activities are characterized strong learning and experience effects such that unit costs decline as cumulative output grows. - Whether high level of capacity utilization are crucial to achieving low cost production efficiency - Capital requirements - Ease of entry and exit - Industry profitability A industry’s economic analysis is important for its implication for strategy formulation
doc_845637290.doc
strategic management covers topics like industry Analysis and Dominant Economic Features and discusses key features
Industry Analysis
Dominant Economic Features
The factors to consider in profiling an industries Economic Features is fairly standard This is where analysis of industry and competition begins. Key features are: - Market size - scope of competitive rivalry - Market growth rate and position in Industry Life Cycle - Number of rivals and their relative sizes, fragmented, concentrated in clusters, dominated by few rivals - Number of buyers and their relative sizes - Extent to which rivals have backward or forward integration - Distribution channels used, type and extent, trade terms - Pace of technological changes in production process, innovation and new product introduction - Extent to which products and services of rival firms are differentiated - Extent to which rivals can realize economies of scale in purchasing, manufacturing, transportation, marketing or advertising - Whether industry activities are characterized strong learning and experience effects such that unit costs decline as cumulative output grows. - Whether high level of capacity utilization are crucial to achieving low cost production efficiency - Capital requirements - Ease of entry and exit - Industry profitability A industry’s economic analysis is important for its implication for strategy formulation
doc_845637290.doc