BU481 Lecture Notes - Lecture 3: Pest Analysis, Coffee Bean, Fixed Cost
Document Summary
Firm or group of firms that produce or sell the same or similar products to the same market. No definitive rules as to where to draw the industry boundaries but try to avoid being: too inclusive: factors that differ across heterogeneous markets cannot be detected, too exclusive: important threats are missed. Key questions: regarding the industry and competitive environment: Where do we compete how attractive is the industry porter 5 forces. What is driving the industry pest analysis. What are the key factors for competitive success. Understand where value is being derived in industry. Understand why some industries are more attractive. Game theory harder to do because there is usually more than 2 players. Best decision to both cooperate and cooperate until you know the person will turn on you. All of the inputs all to the end consumers. How much of the entire industry value system does the firm control! The more you control the more profitable you are.
