COMM 315 Lecture Notes - Lecture 1: Newly Industrialized Country, Switching Barriers, Bargaining Power
1 Feb 2017
School
Department
Course
Professor
Document Summary
An external analysis is what might be done? . Swot analysis can be used to summarize internal and external analysis. Opportunity: a condition in the general environment that, if exploited, helps a firm achieve a competitive advantage. Threat: a condition in the general environment that may hinder a firm"s efforts to achieve competitive advantage. They can harm an industry"s profitability if firms are not able to recover the cost increase. An unattractive industry will have: low entry barriers strong supplier power strong buyer power. An attractive industry will have: high entry barriers low supplier power low buyer power. A strategic group is a collection of firms that follow similar strategies along similar dimensions. Each industry is populated with different strategic groups. Competitive rivalry is greater within a strategic group than it is between different strategic groups. Overall an industry analysis consists of six steps: define the industry.
