ADMS 1000 Lecture : adms ch. 6.docx

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

Definition- analysis, decisions, implementations and evaluations a firm undertakes to create and sustain is competitive advantage. A firm will analyze there external and internal environments and based of that they pursue an effective strategy for change. Although a company plans out its strategy sometimes an external effect can change the companies plan (ie. the sars crises, microsoft entry into the environment). Industry definition- group of organizations or firms that share similar resource requirements (raw materials, labor, technology, customers). Example would be airline industry (air canada, westjet). Threats of new entrants- new startup firms bring new capacity, desire to gain market share and substantial resources and capabilities. They may impose significant threats to incumbents due to their reduced profit (ie, hyundai can sell cars cheap when they enter the market, so toyota has to compete with these prices) Economies of scale- spreading the costs of production over the number of units produced.