GMS 724 Chapter Notes - Chapter 10: Market Fundamentalism, Transact, Protectionism

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Lori Anne Heckbert

Document Summary

Industry structure: the makeup of an industry (its number of sellers and their size distribution, the nature of the product, and the extent of barriers to entry) Interpreting industry structure often relies on the concepts and tools represented in the five forces model: a framework used to assess industry structure and business strategy in estimating the potential for profitability. New products, firms, markets, and managers trigger new developments in rivalry, pricing, substitutes, buyers, and suppliers. Understanding industries and how they change has led researchers to study how good companies achieved greatness. Reports indicate that great companies apply a down-to-earth, pragmatic, committed-to-excellence framework that kept each company, its leaders, and its workers on track for the long haul. Great by choice: bright executives exploit market imperfections to outperform rivals: create value through innovative products or processes in ways, as a result, they outperform rivals that are not easily matched or cheaply copied.