BPS 4305 Lecture Notes - Lecture 14: Product Differentiation, Switching Barriers, Swot Analysis
6 Sep 2016
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Scanning involves surveillance of a firm"s external environment: predicts environmental changes to come, detects changes already under way, allows firm to be proactive. Environmental monitoring tracks evolution of environmental trends: hard trends measurable facts/events, soft trends estimated, probable events. Identify rivals" strengths & weaknesses: collect data on competitors, interpret intelligence data. Help firms avoid surprises: anticipate competitors" moves, decrease response time. Beware of the potential for unethical behavior while gathering intelligence. Scenario analysis involves detailed assessments of the ways trends may affect an issue & development of alternative futures based on these assessments. Swot analysis is a basic technique for analyzing firm and industry conditions: firm or internal conditions = strengths & weaknesses. Where the firm excels and lacks: environmental or external conditions = opportunities and threats. Developments that exist in the general environment. Activities among firms competing for the same customer. Swot analysis: look internal and external, make firms act proactive, raise awareness about role of strategy.
