MGT 405 Chpt 2

arise when a company can take advantage of conditions in its environment to formulate and implement strategies that enable it to become more profitable

arise when conditions in the external environment endanger the integrity and profitability of the company's business

a group of companies offering products or services that are close substitutes for each other

products or services that stisfy the same basic customer needs

a group of closely related industries

distinct groups of customers wintin a market that can be differentiated from each other on the basis of their distinct attributes and specific demands

companies that are not currently competing in an industry but have the capability to do so if they choose

when unit costs fall as a firm expands its output

when consumers have a preference for the products of established companies

when an established company has such a low cost structure that new entrants cannot expect to match this structure

when it costs a customer time, energy, and money to switch from the products offered by one established company to the products offered by a new entrant

the number and size distribution of companies in an industry

economic, strategic, and emotional factors that prevent companies from leaving an industry

companies that sell products that add value to the products of companies in an industry because when used together, the products better satisfy customer demands

within-industry factors that inhibit the movement of companies between strategic groups

identifies five sequential stages in the evolution of an industry that lead to five distinct kinds of industry environment

What are the 5 stages of the industry life cycle?

states that long periods of equilibrium, when an industry's structure is stable, are punctuated by periods of rapid change when industry structure is revolutionized by innovation

What are the 5 forces behind Porter's Five Forces Model?