RSM392H1 Study Guide - Final Guide: Andrew Grove, Image Sensor, Emerging Markets
27 Jan 2013
School
Department
Course
Professor
Document Summary
Strategic positioning = doing different things than your rivals. Strategy = a plan that specifies tradeoffs, a vision for how the firm can create a defensible advantage against the forces that determine industry profitability. D&s works well to describe certain situations, focuses on predicting price & quality. 5 forces more flexible: works where assumptions of d&s don t hold, focuses on long run structure & profitability: supplier power affects marginal costs, substitutes affect slope, shape of demand curve, entry barrier affect steepness supply curve. The state of competition in an industry depends on five basic forces, which are diagrammed in the. The collective strength of these forces determines the ultimate profit potential of an industry. In economists perfectly competitive industry, jockeying for position is unbridled and entry to the industry very easy. This kind of industry structure, of course, offers the worst prospect for long-run profitability.
