BU111 Lecture Notes - Lecture 2: Match Game

• School: WLU
• Department: Business
• Course: BU111
• Professor: Leeanne Hagerty

Document Summary

**bbm live case- mandatory q&a on october 3rd, 12-1*: how competitive forces shape strategy, competition is often looked at too narrowly by managers. Porter"s five forces: new entrants, customers and suppliers that have buying power, holistic way of looking at any industry, what is causing profitability, airline industry, one of the least profitable industries. Intense nature of rivalry: low barriers to entry. Easy to rent out a plane, a gate and starting with one plane: attractive industry but attractiveness has nothing to do with profitability, a lot of substitutes. Train, car, etc: unionized labour (pilots) labour is one of an airline"s key inputs. Is not capital intensive ways around that: soft-drink industry, unattractive but profitable, **differentiation*, new venture: recently formed commercial organization that sells goods/services. Influenced by pest: successful only when entrepreneur, opportunity, and resources fit, begins with entrepreneur identifying an opportunity then accessing resources. And can you access them: all three should be well matched, aligned.