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 Study the market, coupe with competition (direct and indirect).  New business create pressure on the market either in price, investment rate and costs  Set profit performance measures that can measure company success and productivity across industries.  Understand the market requirements and set industry structures which drives the forces  Study forces-drive up  Concentrate forces-drive down profitability.

The five completive strategy forces  Potential new entrants/industries  Customers i.e. buyers  Current Competitors  Mixed Products  Suppliers It is important to study the strategy formulation

◦ Create additional capacity ◦ Affect prices and profit margin ◦ Affect supply e.g.. Intel and demand scale e.g.., eBay ◦ Switch and decrease customer costs ◦ Invest and study capital requirements ◦ Seize ad opportunities and advantages independent of size. ◦ Access availability to different market channels with low costs. et a structured and restrictive government policy and procedures ◦ Expand the business off-shore e.g.. Retail Associations in India)

 Reliability and customer order fulfillment e.g.. Bloomberg i.e. dependency  The more supplier power the more value is created for their business e.g.. Microsoft.  Supply mixed products that maintain organization position in competitive advantage market.  Create a high number of customers that increase productivity and decrease costs

 More customers create a big customer database  Concentrate in building up a strong few buyers but with high quantity of orders or volumes, e.g., SNL  Standardization of work procedures and products  Minimize operational costs by eliminating non-added value activities.

 Reduce costs and operational expenses  Cheaper raw materials, accordingly ability to offer cheap products/ service  Overcome any level of uncertainty or trade off during the different flow of information or mater processes  Decrease operational expenses

There are different impacts that affect the revivals;  Increase size of competitors in same industrial or equivalent,  Slow and decrease the growth rate same size,  Increase exit barriers levels,  Price competition

 Industrial requirements; ◦ Study the growth rate ◦ Introducing new technology and innovation ◦ Changes in government policies ◦ Introducing bundles products e.g.. Software with computers  Define industry size ◦ Service and product scope ◦ Geographical Scope  Industrial Structures Changes ◦ Develop and introduce developments methods to dictate ad cope with changes ◦ Develop a strong supplier – customer relationship ◦ Study new rivals threats ◦ Study opportunities of outsource and sub-contracting ◦ Industrial Structures Changes

 Value stream the five forces that can highlight non-added activities within the processes.  Conduct and applied advanced techniques as SWOT analysis  Maintain and sustain the company position in the market.  Introduce new technologies to the industry e.g.. Apple and i- tunes,  Expand profit opportunities  Reshape the structure of the company to meet market requirements  Identify different external and internal factors that can affect the company  Draft common mistakes by applying best practices  Explore different future opportunities  Analyze future internal and external changes and identify positive and negative impacts.