BUSS1000 Lecture Notes - Lecture 4: Pest Analysis, Game Players, Hot Chocolate

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

Document Summary

Define industry boundaries by identifying relevant market. Define boundary by substitutability on demand side. Assessing the attractiveness (profit potential) of different industries. Assess whether each is low, medium or high: Supplier power- medium/mixed (airports high supplier power, catering low) Does (cid:374)ot (cid:271)ase o(cid:374) ga(cid:373)e theor(cid:455) ((cid:272)o(cid:373)petiti(cid:448)e (cid:858)(cid:449)ar(cid:859) (cid:271)et(cid:449)ee(cid:374) (cid:271)usi(cid:374)esses to gai(cid:374) higher (cid:373)arket share) Static nature of analysis (competitive interactions not well managed) Sometimes blind to complementary & dynamics of markets. Moves beyond notion of kill/be killed mentality. Suggest: organizations should not act egocentrically (how do i get more of the pie). Should act allocentrically (how pie size can increase) Involves careful e(cid:454)a(cid:373)i(cid:374)atio(cid:374) of a(cid:374) orga(cid:374)izatio(cid:374)s(cid:859) operati(cid:374)g e(cid:374)(cid:448)iro(cid:374)(cid:373)e(cid:374)t. Fo(cid:272)us predo(cid:373)i(cid:374)a(cid:374)tl(cid:455) o(cid:374) i(cid:374)dustr(cid:455) (cid:272)o(cid:374)te(cid:454)ts fro(cid:373) (cid:271)usi(cid:374)ess(cid:859) perspe(cid:272)ti(cid:448)es. Identify and analyse all elements of the game. Player is complementor if customers value your products more when they have other pla(cid:455)er(cid:859)s produ(cid:272)t. competitor if customer value your product less when they have other pla(cid:455)er(cid:859)s produ(cid:272)t. What is current scope of the game.