BBA220 Lecture Notes - Lecture 5: E-Book
7 Jun 2018
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WEEK 5 Lecture
Three Key Questions:!
1) Is the industry accessible- in other words, is it a realistic place for new venture to enter?"
2) Does the industry contain markets that are ripe for innovation or are underserved?"
3) Are there positions in the industry that avoid some of the negative attribute of the industry as a
whole?"
Techniques available to assess Industry Attractiveness:"
5 forces modell Porter, "
Study Environmental and Business Trends "
Rivalry Among Existing Firms:!
1)Number and balance of competitors "
2)Degree of diļ¬erence between products"
3)Growth rate of an industry:"
- Slow groth industry: insurance"
- High growth industry: e-book publishing "
4)Level of ļ¬xed costs"
Barriers to Entry:"
-Economies of scale"
-Product diļ¬erentiation "
-Capital requirements"
-Cost adventages independet of size"
-Access to distribution channels"
-Government and legal barriers"
-Strength of management team "
-First mover advantage"
-Passion of the management team and employee"
-Unique business model"
-Internet domain name"
-Inventing a new approach to an industry"
Thread of Substitutes:!
- price depends on the availability of substitutes"
-for example Cafes :"
ā> sell also a place where you can meet, socialize and study"
Bargaining Power of Suppliers"
Industry Types and the Opportunities they oļ¬er"
-Emerging Industries!
- Fragmented"
-Mature"
-Declining "
-Global"
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