MGMT4210 3

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  1. different levels of analysis and the relevant framework
    • society - PESTEL
    • proximate industries - Porter's five forces
    • firm's industry - SCP
    • firm's strategic group - strategic group analysis
    • firm - core competencies, RBV, VRIO
  2. components of PESTEL framework?
    • political
    • economic
    • sociocultural and demographic
    • technological
    • ecological
    • legal
  3. PESTEL framework - political and legal
    • laws and regulations
    • taxation policies
    • government priorities
    • int'l agreements
  4. PESTEL framework - economic
    • growth rates
    • interest rates
    • employment levels
    • inflation levels
    • currency exchange rate
  5. PESTEL framework - sociocultural and demographic
    • social attitudes
    • demographic trends
  6. PESTEL framework - technological
    • process advances
    • product advances
    • services advances
  7. PESTEL framework - ecological
    • climate change
    • air pollution
    • large scale accidents
  8. Nonmarket strategies
    • government - lobbyists and corp leaders, challenging laws in courts, bribing
    • public (changing perceptions) - advertisement and sponsoring friendly think tanks
    • others- lawsuits, industry standard setting boards, JV/alliances
  9. components of 5F framework?
    • threats of new entry
    • threats of substitutes
    • bargaining power of suppliers
    • bargaining power of buyers
    • rivalry within the industry
  10. realized VS implied threat of new entrants: implications
    • no matter whether there are new entrants or not, profits suffer
    • threat cannot be measured by number of new entrants
  11. cost of threats of new entry
    • lower prices to drive out new entrants
    • invest in customer value/differentiation
  12. barriers to entry
    • Economies of scale(spreading FC)
    • Network externality
    • Customer switching costs
    • Capital requirements
    • Advantages independent of size (tied to RBV)
    • Threat of retaliation
    • Government policy
  13. barriers to entry - Threat of retaliation - depends on
    • incentive to retaliate
    • ability to retaliate
    • demonstrated willingness to retaliate
  14. threats of substitutes - esp. high when? + examples
    • substitutes offer attractive price-performance trade off (netflix, youtube VS cinemas)
    • cost of switching is low (high speed trains for short haul flights)
  15. bargaining power of suppliers - esp high when?
    • suppliers are more concentrated than buyers
    • supplying differentiated products
    • buyers face high switching cost
    • low threat of new entrant
    • little substitutes
    • suppliers can forward integrate
  16. cost for focal industry if bargaining power of suppliers is high
    • demanding higher prices
    • reducing quality
  17. ability to extract value is poor when the buyer is esp. price sensitive; esp high when?
    • buyer's purchase represent big part of their cost structure>high incentive to bargain
    • buyers earn low profits/cash constrained - low ability to pay
    • quality of buyer's product not really affected by suppliers inputs(eg. commodity)
  18. rivalry within the industry - industry structure - components (SCP model)
    • industry concentration
    • pricing power(demand higher price without losing much sales)
    • mode of competition (price or differentiation)
    • entry barriers
  19. Structure, conduct and performance model (SCP) - types of competition from low to high profit potential
    • perfect competition
    • monopolistic competition
    • oligopolistic competition
    • monopoly
  20. additional determinants of competition beyond structure
    • industry growth
    • sales volume pressure (for high FC and excess capacity)
    • exit barriers
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ID
317026
Card Set
MGMT4210 3
Description
MGMT4210
Updated
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