1. CH2-2: 기업의 외부환경 평가하기

2. Five-Forces Model of Environmental Threats 1. The Threats of Entry 1) Economies of Scale: Scale economies in production, research, marketing, and service. 2) Product Differentiation: Brand identification creates a barrier by forcing entrants to spend heavily to overcome customer loyalty.

3. 3) Cost Advantages Independent of Scale: Proprietary Technology, Know-how, Favorable Access to Raw Materials, Favorable Geographic Locations, Learning- curve Cost Advantages. 4) Contrived Deterrence 5) Government Policy 6) Other Barriers to Entry: Capital Requirement of entry, Customer-Switching Costs, Access to Distribution Channels

4. 2. Threat of Rivalry 3. Threat of Substitutes 4. Threat of Suppliers 5. Threat of Buyers

5. First-Mover Advantages First-mover advantages could be defined in terms of the ability of pioneering firms to earn positive economic profits. This first-mover opportunity may occur because the firm possesses some unique resources or simply because of luck.

6. Mechanisms Leading to First- Mover Advantages 1.Technological Leadership 2.Preemption of Assets 3.Buyer Switching Costs

7. I. Technological Leadership 1. Learning Curve: In the standard learning-curve model, unit production costs fall with cumulative output. This generates a sustainable cost advantage for the early entrant if learning can be kept proprietary and the firm can maintain leadership in market share.

8. I. Technological Leadership 2. R&D and Patents: When technological advantage is largely a function of R&D expenditures, pioneers can gain advantage if technology can be patented or maintained as trade secrets.

9. II. Preemption of Scarce Assets 1. Preemption of Input Factors: If the first- mover firm has superior information, it may be able to purchase assets at market prices below those that will prevail later in the evolution of the market. ex) Natural resources deposits, retailing or manufacturing locations

10. II. Preemption of Scarce Assets 2. Preemption of Locations in Geographic and Product Characteristics Space: The first-mover can often select the most attractive niches and may be able to take strategic actions that limit the amount of space available for subsequent entrants.

11. II. Preemption of Scarce Assets 3.Preemption Investment in Plant and Equipment: The enlarged capacity of the incumbent serves as a commitment to maintain greater output following entry, with price cuts threatened to make entrants unprofitable.

12. III. Switching Costs and Buyer Choice under Uncertainty 1. Switching Costs: With switching costs, late entrants must invest extra resources to attract customers away from the first- mover firm. Cost from initial investments Supplier specific learning Contractual switching costs

13. III. Switching Costs and Buyer Choice under Uncertainty 2. Buyer Choice under Uncertainty: Early- mover firms may be able to establish a reputation for quality that can be transferred to additional products through umbrella branding and other tactics.

14. First-Mover Disadvantages 1. Free-Rider Effects: Late-movers may able to ‘free-ride’ on a pioneering firm’s investment in a number of areas including R&D, buyer education, and infrastructure development.

15. First-Mover Disadvantages 2. Resolution of Technological or Market Uncertainty: Late-movers can gain an edge through resolution of market uncertainty. Late-movers may be able to take advantage of the first-mover’s mistakes ex) Toyota

16. First-Mover Disadvantages 3. Shifts in Technology or Customer Needs: Technological process is a process of ‘creative destruction’ in which existing products are superseded by the innovations of new firms. Customer needs are also dynamic, creating opportunities for later entrants unless the first-mover is alert and able to respond.

17. First-Mover Disadvantages 4. Incumbent Inertia: Vulnerability of the first- mover is often enhanced by incumbent inertia. The firm may be locked into a specific fixed assets. The firm may be reluctant to cannibalize existing product lines. The firm may become organizationally inflexible.