SGMT 3000 Lecture Notes - Lecture 2: Acura, Social Forces, Oligopoly
9 May 2016
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Chapter 2 external analysis: opportunities and threats. Opportunities: elements in a company"s environment that allow it to formulate and implement strategies to become more profitable. Threats: elements in the external environment that could endanger a firm"s integrity and profitability. Industry: group of companies offering products or services that are close substitutes for each other. Market segments - distinct groups of customers within a market that can be differentiated on the basis of their: individual attributes, specific demands. Within a sector, there are several industries. Within a industry, there are several market segments. Porters model used to compare the profitability btw two industries. Used to explain why some industries are so profitability. Industry level model, not a firm level model. Michael porters model not used if companies are in the same strategic group. Sgmt3000: risk of entry by potential competitors. Potential competitors: companies that are currently not competing in the industry but have the potential to do so.
