BUS 441 Lecture Notes - Lecture 4: Vertical Integration
22 Mar 2018
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Document Summary
Used to determine if we want to stay in industry or if we want to get out. Also to determine whether we want to move into an industry. What has been track history in sustaining self during difficult times financially. How profitability of business now and what the profitability of businesses in the future. Strategic competitive analysis: tactical competitive analysis day to day competition that you"re dealing with. Direct rivalry: anybody who can hurt you financially. Goal = look at the competitiveness of an industry. Five forces model protect against your suppliers hurting you, and protect your customers from hurting you but you are a supplier and customer: direct rivalry competition on a day to day basis. As competitors in industry get closer in size and capability the more competitive the industry will be. As industry growth starts to decline, the industry becomes more competitive.
