BUSS1000 Lecture Notes - Lecture 4: Pest Analysis, Habitat, Coopetition

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1000
• Professor: Steven Hitchcock

Document Summary

Objectives: layers, external environment, porter"s five forces (industry and/or market, value net (industry and/or market, pestle (macro-environment) Further methods to use: demand for the industry, organization of the industry, regulation of industry. Porter"s 5 forces: originally developed as a way of assessing the attractiveness (profit potential) of different industries, the five forces constitute an industry"s structure, can be employed by any organisation es, bsc. How to use / apply porter"s 5 forces: Assess whether each is ranked: low, medium, or high: supplier power. High supplier power is not a good thing: buyer power. High buying power is not a good thing: threat of new entry (of other companies, substitution (this does not mean another company. This means another industry coming along and substituting the original industry e. g. airline vs. Criticisms of porter"s 5 forces: defining the right industry" can be very difficult, converging industries. Power" & threats" not so useful for entrepreneurial firms.