工商管理专业英语unit5_Competitive_Industry_Environment_Analysis教材教学课件.pptVIP

Unit Five Competitive Industry Environment Analysis;Glossary;Glossary;Glossary;Glossary;Key Terms and Concepts;Key Terms and Concepts;There seems little doubt that an industry’s structure changes affect not only the degree of competitive intensity but the bases of competition as well. Industry evolution be best be judged by analyzing an industry’s long-term attractiveness, its characteristics, its driving forces, its success determinants, and especially the major competitive forces: present competitors, potential competitors, the bargaining power of suppliers and buyers, and substitute products. Before focusing on these subjects, it is necessary to briefly discuss industry competition and strategic groups.;Industry analysis A number of questions need to be answered in making an industry analysis. The most important ones are How profitable is the industry likely to be short-term? Long-term? An attractive industry plays a large role in determining a firm’s strategy---particularly its aggressiveness. An unattractive industry, on the other hand, could lead the firm into withdrawal strategies or an attempt to form an alliance with a competitors. What are the more important industry’s characteristics? In answering this question, the following factors should be considered--- market size and growth rate, number of firms, geographical scope, degree of vertical integration, ease of entry and exit, channels of distribution, customers, technology, and scale/learning effects.;What are the industry’s driving force? Michael Porter identifies a number of driving forces that to a greater or lesser degree are present in the evolution of any industry. These include (1) changes in the market long-term growth rate, which directly affect investment decisions and intensity of competition; (2) changes in buyers segments, which affect demand and strategic marketing programs; (3) diffusion of proprietary knowledge, which controls both the rate at which products become more alike and entry