EXTERNAL ENVIRONMENT INDUSTRY, MARKETS COMPETITION ECONOMY

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Presentation transcript:

EXTERNAL ENVIRONMENT INDUSTRY, MARKETS COMPETITION ECONOMY LEGAL, POLITICAL, SOCIAL

INDUSTRY, MARKETS CUSTOMER/CONSUMER BUYER WHO WHERE (AREA, COUNTRY) WANTS, NEEDS BUYING BEHAVIOR BUYER POWER RELATIONSHIPS/ALLIANCES

INDUSTRY, MARKETS (CONT’D) MARKET SIZE, TRENDS SUBSTITUTES DISTRIBUTION SYSTEM STAGE, PRODUCT LIFE CYCLE

INDUSTRY, MARKETS (CONT’D) STAGE, INDUSTRY LIFE CYCLE FRAGMENTED CONSOLIDATED TECHNOLOGY AS THE PRODUCT SUPPLIERS POWER RELATIONSHIPS/ALLIANCES

COMPETITION NATURE OF WHO, WHERE STRATEGY ADVANTAGES - SUSTAINABLE DISADVANTAGES

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 Atmosphere Quality of Food Candlelight Dining Unoccupied Product Space Atmosphere Fast Food Average Gourmet Quality of Food

Strategic Group Map Price 17  16 Co B 15  14  Co D 13 Co A  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 EFFECTS ON DEMAND EXCHANGE RATES EMPLOYMENT RATES INFLATION STABILITY

LEGAL, POLITICAL, SOCIAL LAWS, REGULATIONS VARY BY MARKET VARY BY COUNTRY ETHICS TRENDS IMPORT/EXPORT LAWS

“ABSOLUTE” REQUIREMENTS KEY SUCCESS FACTORS “ABSOLUTE” REQUIREMENTS Airlines: low unit cost Air delivery: worldwide dist.

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