BUSI 4609 Lecture Notes - Lecture 2: Static Pressure, Factor 5, Strategic Management
6 May 2018
School
Department
Course
Professor
Lecture 2
1. Strategic implication
Unattractive
Ideal
Rivalry
High
Moderate
Entry barrier
Low
High
Substitute
Strong
None
Bargaining power
High
Low
Con
▪ Static pressure of competition
▪ Low emphasize on individual difference
▪ High emphasize in industry
Solution:
▪ Insulate firm from competitive force
▪ Influence pressure favor company
▪ High competitive advantage
2. 5 forces analysis
a. assess each force’s strength
b. rank 1-10
c. explain how each force act to create competitive pressure
d. interpret final score
e. determine overall competition
f. score 5: slight unattractive
g. scare 7: fairly unattractive
h. score 8: attractive
3. driving forces
a. major underlying cause of change industry and competitive
condition
b. identify forces exert greatest influence
c. assess impact
d. eg. change in long term growth rate
e. technology innovation
f. marketing changes
g. standardized differentiated products
h. new regulation
4. Key Success Factor
a. Elements that affect every industry member
b. Type
i. Technology
ii. Manufacturing
iii. Distribution
iv. Marketing
v. Skill
vi. Organizational
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