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EXTERNAL ENVIRONMENT. INDUSTRY, MARKETS COMPETITION ECONOMY LEGAL, POLITICAL, SOCIAL. INDUSTRY, MARKETS. CUSTOMER/CONSUMER WHO WHERE (AREA, COUNTRY) WANTS, NEEDS BUYING BEHAVIOR BUYER POWER RELATIONSHIPS/ALLIANCES. INDUSTRY, MARKETS (CONT’D). MARKET SIZE, TRENDS SUBSTITUTES

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Presentation Transcript
External environment
EXTERNAL ENVIRONMENT

  • INDUSTRY, MARKETS

  • COMPETITION

  • ECONOMY

  • LEGAL, POLITICAL, SOCIAL


Industry markets
INDUSTRY, MARKETS

  • CUSTOMER/CONSUMER

    • WHO

    • WHERE (AREA, COUNTRY)

    • WANTS, NEEDS

    • BUYING BEHAVIOR

  • BUYER

    • POWER

    • RELATIONSHIPS/ALLIANCES


Industry markets cont d
INDUSTRY, MARKETS (CONT’D)

  • MARKET SIZE, TRENDS

  • SUBSTITUTES

  • DISTRIBUTION SYSTEM

  • STAGE, PRODUCT LIFE CYCLE


Industry markets cont d1
INDUSTRY, MARKETS (CONT’D)

  • STAGE, INDUSTRY LIFE CYCLE

    • FRAGMENTED

    • CONSOLIDATED

  • TECHNOLOGY AS THE PRODUCT

  • SUPPLIERS

    • POWER

    • RELATIONSHIPS/ALLIANCES


Competition
COMPETITION

  • NATURE OF

  • WHO, WHERE

    • STRATEGY

    • ADVANTAGES - SUSTAINABLE

    • DISADVANTAGES


Competition cont d
COMPETITION (CONT’D)

  • RIVALRY

  • ENTRANTS, EXITS

  • SUBSTITUTES


Industry Map / Strategic Groups

Mercedes

Jaguar

BMW

High

General Motors

Ford

Chrysler

Nissan

Toyota

Honda

VW

Price/Quality

Hyundai

Yugo

Low

Few

Many

Number of Market Segments Served


Strategic Groups

Candlelight Dining

Unoccupied Product Space

Atmosphere

Fast Food

Average

Gourmet

Quality of Food


Strategic group map
Strategic Group Map

Price

18

17 

16 Co B

15 

14  Co D

13 Co A 

12 Co C

11

10

Q3 Q2 Q1

Quality (1=highest)

What is the strategy? Is the strategy “right?”


Economy
ECONOMY

  • EFFECTS ON DEMAND

  • EXCHANGE RATES

  • EMPLOYMENT RATES

  • INFLATION

  • STABILITY


Legal political social
LEGAL, POLITICAL, SOCIAL

  • LAWS, REGULATIONS

    • VARY BY MARKET

    • VARY BY COUNTRY

  • ETHICS

  • TRENDS

  • IMPORT/EXPORT LAWS


Key success factors

KEY SUCCESS FACTORS

“ABSOLUTE” REQUIREMENTS

Airlines: low unit cost

Air delivery: worldwide dist.


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