SGMT 3000 Chapter Notes - Chapter 2: Customer Switching, Computer Hardware, Switching Barriers

• School: York University
• Department: Strategic Management
• Course: SGMT 3000
• Professor: Shoeb Mohammmad

Document Summary

Strategy formulation begins with analysis of forces that shape competition within industry. Goal: understand opportunities and threats confronting the firm. Use understanding to identify strategies that outperform rivals. Opportunities: elements and conditions in company"s environment that allow it to formulate and implement strategies that enable it to become more profitable. Threats: elements in external environment that could endanger integrity and profitability of company"s business. Ultimate insight from chapter: company must either fit its strategy to external environment or be able to reshape environment to its advantage through chosen strategy to succeed. Industry: group of companies offering products or services that are close substitutes for each other; they satisfy same basic customer needs. Ex. carbonated drinks, fruit punches, and bottled water = close substitutes because they serve same basic need. = soft drink industry: major players: coca-cola, pepsico, cadbury schweppes. How: look at basic customer needs the company is serving. Industry = supply side of market, companies = suppliers.