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

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

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

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

5. COMPETITION NATURE OF WHO, WHERE STRATEGY ADVANTAGES - SUSTAINABLE
DISADVANTAGES

6. COMPETITION (CONT’D)
RIVALRY
ENTRANTS, EXITS
SUBSTITUTES

7. 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

8. Strategic Groups Atmosphere Quality of Food Candlelight Dining
Unoccupied Product Space
Atmosphere
Fast Food
Average
Gourmet
Quality of Food

9. Strategic Group Map Price 17  16 Co B 15  14  Co D 13 Co A 18
17 
Co B
15 
 Co D
Co A 
Co C 11 10
Q3 Q2 Q1
Quality (1=highest)
What is the strategy? Is the strategy “right?”

10. ECONOMY EFFECTS ON DEMAND EXCHANGE RATES EMPLOYMENT RATES INFLATION
STABILITY

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

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