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    2.porters Model - Strategic Groups Competitive Changes During Industry Evolution

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    kayalkannan
    1. The document discusses Porter's Five Forces model for analyzing competitive forces within an industry. It describes the five forces as the threat of new entry, bargaining power of suppliers, bargaining power of buyers, substitute products, and rivalry among existing players. 2. It also discusses strategic groups within industries and how competitive forces change during an industry's evolution over its life cycle from embryonic to declining stages. 3. Key concepts covered include industry definition, differentiating factors, cost advantages, and government policy related to new industry entry. Strategic types like defenders, prospectors, and analyzers are also defined.

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    2.porters Model - Strategic Groups Competitive Changes During Industry Evolution

    Uploaded by

    kayalkannan
    598 views21 pages
    1. The document discusses Porter's Five Forces model for analyzing competitive forces within an industry. It describes the five forces as the threat of new entry, bargaining power of suppliers, bargaining power of buyers, substitute products, and rivalry among existing players. 2. It also discusses strategic groups within industries and how competitive forces change during an industry's evolution over its life cycle from embryonic to declining stages. 3. Key concepts covered include industry definition, differentiating factors, cost advantages, and government policy related to new industry entry. Strategic types like defenders, prospectors, and analyzers are also defined.

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    2.Porters Model_Strategic Groups Competitive Changes During Industry Evolution (1)

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    1. The document discusses Porter's Five Forces model for analyzing competitive forces within an industry. It describes the five forces as the threat of new entry, bargaining power of suppliers, bargaining power of buyers, substitute products, and rivalry among existing players. 2. It also discusses strategic groups within industries and how competitive forces change during an industry's evolution over its life cycle from embryonic to declining stages. 3. Key concepts covered include industry definition, differentiating factors, cost advantages, and government policy related to new industry entry. Strategic types like defenders, prospectors, and analyzers are also defined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    598 views21 pages

    2.porters Model - Strategic Groups Competitive Changes During Industry Evolution

    Uploaded by

    kayalkannan
    1. The document discusses Porter's Five Forces model for analyzing competitive forces within an industry. It describes the five forces as the threat of new entry, bargaining power of suppliers, bargaining power of buyers, substitute products, and rivalry among existing players. 2. It also discusses strategic groups within industries and how competitive forces change during an industry's evolution over its life cycle from embryonic to declining stages. 3. Key concepts covered include industry definition, differentiating factors, cost advantages, and government policy related to new industry entry. Strategic types like defenders, prospectors, and analyzers are also defined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 21

    MBA 101 UNT 1 0

    Strateg|c Management
    9 12 September 2010(S
    th
    hour)
    Mkarunakaran LecLurer
    MBA 101 UNT 1 1
    erew of lasL class
    unl1 1
    MBA 101 UNT 1 2
    1odays Lopc
    orLers le lorces Model
    CompeLLe Changes uurng lndusLry LoluLon
    MBA 101 UNT 1 3
    1odays news
    2010 Pakistan fIoods
    http://en.wikipedia.org/wiki/2010_Pakistan_fIoods
    orLers le lorces Model
    8usness olcy and SLraLegc ManagemenL MrM!eyaraLhnam
    MBA 101 UNT 1 4
    orLers le lorces Model lnLroducLon
    - An lndusLry conssLs of a group of companes offerng producLs or serces whch
    are smlar and acL as a subsLLuLe for each oLher
    - SLraLegc analyze compeLLe forces wLhn an ndusLry Lo denLfy opporLunLes
    and LhreaLs facng a frm
    - A model for analyzng Lhe ndusLry enronmenL s deeloped by MchaelLorLer
    an auLhorLy on compeLLe sLraLegy
    - 1hs model s known as fe force model
    MBA 101 5 UNT 1
    orLers le lorces Model
    le force model
    MBA 101 6 UNT 1
    11hreaL of new LnLry
    1 Lconom|cs of Sca|e lnLel has sgnfcanL cosL adanLage due Lo scale economcs n
    producLon and sale of mcroprocessors
    2 roduct D|fferent|at|on Peay aderLsemenL has been done for LoleL soaps such
    as Lrl Lux and Lfeboy Lo buld brand loyalLy
    3 Cost Advantage MS uS peraLng sysLem for l8M C gae a key adanLage
    4 Cap|ta| kequ|rements Masse nesLmenLs s requred Lo enLer n Lo arcrafL and
    mneral exLracLon
    S Access to d|str|but|on channe|s small frms fnd dffculL and large frm fnd easy
    1lMLx creaLe own dsLrbuLon sysLems for Ls waLches
    6 Government o||cy CoernmenL can lmL some ndusLry Lo enLer n Lo Lhe markeLs
    MBA 101 7 UNT 1
    Accordng Lo orLer a suppler s sad Lo be powerful f Lhe followng condLons
    preal
    - uomnaLon of suppler ndusLry eLroleum ndusLry
    - roducL/Serce s dfferenLaLed a unque where L has bulL up swLchng
    cosLs(Word processng sofLware)
    - SubsLLuLes are noL easly aalable LlecLrcLy
    - A urchasng frms buys a small quanLLy of Lhe supplers goods and serces
    and L s unmporLanL Lo Lhe suppler
    28arganng ower of Supplers
    MBA 101 8 UNT 1
    8arganng ower of 8uyers
    Accordng Lo orLer Lhe buyers are powerful n Lhe followng crcumsLances
    - 1he supplers are more n number buL Lhe buyers are few
    - 1he buyers buy n large quanLLy
    - 1he cosL of changng suppler s noL much
    - 1he suppler depends on Lhe buyer for a large percenLage of Lher LoLal orders
    - 1he purchased Lem s noL mporLanL Lo Lhe fnal qualLy or prce of buyers producL
    MBA 101 9 UNT 1
    SubsLLuLe roducLs
    SubsLLuLes are Lhose whch saLsfy smlar needs Lhough appear Lo be dfferenL
    1ea s a subsLLuLe for coffee waLer s consdered a subsLLuLe of sofL drnks and
    saccharne s ewed as a subsLLuLe for sugar
    Accordng Lo porLer 'subsLLuLe producLs lmL Lhe poLenLal reLurns of any
    ndusLry by placng a celng on prce frms n Lhe ndusLry can charge"
    MBA 101 10 UNT 1
    alry among exsLng players
    k|va|ry |s weak
    Companes can rase prce and earn greaL profLs
    k|va|ry |s Strong
    Companes wll reduce prce and earn less profLs
    Intens|ty of r|va|ry |s due to three reasons
    - lndusLry compeLLe sLrucLure
    - uemand condLons
    - 1he heghL of Lhe exL barrers n Lhe ndusLry
    MBA 101 11 UNT 1
    SLraLegc Croups CompeLLe Changes durng lndusLry eoluLon
    MBA 101 UNT 1 12
    - An lndusLry conssLs of number of frms lrms s an ndusLry ofLen dffer
    from each oLher wLh respecL Lo producL qualLy cusLomer serce prce
    polcy dsLrbuLon channel aderLsemenL polcy promoLon LargeL segmenL
    and Lechnologcal channel
    - 1he SLraLeges followed by companes n one sLraLegy group wll dfferenL
    from Lhe sLraLegy pursued by oLher group
    - 1he basc sLraLegy for Lhe company s almosL Lhe same for all Lhe frms
    SLraLegc Croups lnLroducLon
    MBA 101 13 UNT 1
    SLraLegc Croups uS SLeel lndusLry
    x Axs roducLon of sLeels n mllon Lones
    ? axs CosL of producLon per Lonne n $
    MBA 101 UNT 1 14
    US steel
    LTV
    steel
    Special
    steel
    North west
    steel
    Florida steel
    Cheap
    imports
    SLraLegc Croups harma lndusLry
    x Axs u Spendng
    ? axs rces Charged
    Pgh
    Low
    Low Pgh
    MBA 101 UNT 1 15
    Proprietary
    Group
    Merck
    Pfizer
    Generic
    group
    Dr.Reddy
    s Lab
    Ranbaxy
    Strategic Types
    Mles and Snow hae classfed Lhe sLraLegc Lypes n Lo
    Defenders LmLed producL focus on effcency and cosL reducLon Lhs does
    noL encourage Lhem Lo Lry nnoaLe deas
    rospectors 8road producL Lems focus on nnoaLon and opporLunLes focus
    on creaLLy and makes Lhem somewhaL neffcency
    Ana|yzers 1hey operaLe n arable and sLable markeL Lhey focus on effcency
    creaLLy and nnoaLon
    keactors uo noL hae conssLenL sLraLegy absence of well nLegraLed sLraLegy
    sLrucLure culLural relaLonshp
    MBA 101 UNT 1 16
    CompeLLe Changes uurng lndusLry LoluLon
    1he ndusLry lfe cycle model s used for analyzng Lhe effecLs of ndusLry eoluLon on
    compeLLe forces 8ased on Lhe ndusLry lfe cycle model ndusLry enronmenL
    could be denLfed as follows
    Lmbryonc ndusLry enronmenL
    CrowLh ndusLry enronmenL
    ShakeouL enronmenL
    MaLure ndusLry enronmenL and
    ueclnng ndusLry enronmenL
    MBA 101
    UNT 1
    17
    Stages of ndustry Life Cycle
    MBA 101 UNT 1 18
    D
    e
    m
    a
    n
    d
    Time
    MBA 101 UNT 1 19
    erew of Lodays class
    orLers le lorces Model
    CompeLLe Changes uurng lndusLry LoluLon
    "uestions
    WhaL are frms?
    WhaL are Lhe fe forces n orLers model?
    WhaL are Lhe Lypes of Lhe sLraLegy?
    WhaL are Lhe sLeps n ndusLry lfe cycle?
    MBA 101 UNT 1 20

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