Term
| What is the external environment? |
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Definition
Dimensions in the broader society that
influence an industry and the firms within it |
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Term
| General Environment Opportunities |
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Definition
| A condition in the genral environment that if exploited helps a company achieve strategic competitiveness. |
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Term
| General Environment Threats |
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Definition
| A condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness. |
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Term
| General Environment characteristics/ Demographic |
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Definition
| population size/age structure/ geographic distribution/ ethnic mix |
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Term
| General Environment characteristics/ Economic segment |
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Definition
| inflation rates/ interest rates/ trade deficits or surpluses/ budget deficits/ personal savings rate/ business savings rate/ GDP |
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Term
| General Environment characteristics/ Sociocultural |
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Definition
| women in the workplace/ workforce diversity/ attitudes about quality of worklife |
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Term
| General Environment characteristics/ global segment |
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Definition
| international events/ emerging markets/ globalization |
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Term
| General Environment characteristics/ technological segment |
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Definition
| product innovations/ applications of knowledge/ new communication technologies. |
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Term
| General Environment characteristics/ political/legal segment |
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Definition
| antitrust laws/economic policies/taxation laws/deregulation philosophies/labor training laws |
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Term
| What is the Industry Environment? |
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Definition
| set of factors directly influencing a firm and its competitive actions and competitive responses. |
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Term
| Porters 5 forces model of Industry Competition. What are the five forces? |
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Definition
| threat of new entrants/ Rivalry among competing firms/ threat of substitute products/ bargaining power of buyers/ bargaining power of suppliers |
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Term
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Definition
| increases competitivness of an industry and decreases profitability. A function of barriers to entry and the retaliation expected from existing industry participants. |
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Term
| Bargaining power of suppliers |
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Definition
| suppliers are large and few in number. suitable substitute products are no available, suppliers products create high switching costs. |
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Term
| Bargaining Power of buyers |
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Definition
| buyers are large and few in number. buyers purchase a large portion of industrys total output. Buyers can switch to other products without incurring high switching costs. |
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Term
| Threat of substitute products |
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Definition
| buyers face few switching costs. substitute product's price is lower. Substitute products quality and peformance are equal to or greater than the existing product. |
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Term
| Intensity of Rivalry among competitors |
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Definition
| there are numerous or equally balanced competitors. industry growth slows or declines. High exit barriers. |
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Term
| What does an unattractive industry look like? |
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Definition
| low entry barriers/suppliers and buyers ahve strong positions/ strong threats from substitute products/ intense rivaly among competitors. |
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Term
| What does an attractive industry look like? |
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Definition
| high entry barriers/ suppliers and buyers have weak posistions/ few threats from substitute products/ moderate rivalry among competitors. |
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