COMM 320 Chapter Notes - Chapter 5: Fixed Cost, Competitive Intelligence, Starbucks
1 Dec 2016
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Industry: an industry is a group of firms producing a similar product or service, such as airlines, fitness drinks, furniture, or electronic games. Industry analysis: is business research that focuses on the potential of an industry. Once it is determined that a new venture is feasible in regard to the industry and market in which it will compete, a more in-depth analysis is needed to learn the inside and outs of the industry. The analysis helps a firm determine if the target market it identified during feasibility analysis is favorable for a new firm. Firm-level factors: include a firm"s assets, products, culture, teamwork among its employees, reputation, and other resources. Industry-level factors: include threat of new entrants, rivalry among existing firms, bargaining power of buyers, and related factors. For a new venture, think about its position at both the company level and the product or service level.
