Chapter 9 Introduction to Industry and Company Analysis Presenter Venue Date
Cyclical and Noncyclical Companies Cyclical Company
Strategic Analysis: Porter’s “Five Forces” Framework Threat of New Entrants First focus for analysis Intensity of Rivalry Bargaining Power of Suppliers Bargaining Power of Customers Threat of Substitute Products
Industry Concentration What percentage of the market does each of the largest players have?
Source: Based on Figure 2.4 in Hill and Industry Life Cycle Source: Based on Figure 2.4 in Hill and Jones (2008). Source: Based on Figure 2.4 in Hill and Jones (2008).
Porter: Competitive Strategy Source of Competitive Advantage Cost Differentiation Scope Narrow Broad
Spreadsheet Modeling Optimistic Expected Pessimistic
Summary • Uses of industry analysis • Industry classification systems • Establishing a peer group • Strategic analysis: Porter’s five forces • Industry and product life cycles • Demographic, governmental, social, and technological influences • Company analysis • Cost and differentiation strategies • Spreadsheet modeling