产业和竞争力

INDUSTRYANDCOMPETITIVEANALYSIS

CHAPTER2“Analysisisthecriticalstartingpointofstrategicthinking.”“Quote”ChapterOutlineRoleofSituationAnalysisinStrategy-MakingMethodsofIndustryandCompetitiveAnalysisIndustry’sDominantEconomicTraitsIndustry’sCompetitiveForcesDriversofIndustryChangeCompetitivePositionsofRivalsCompetitiveMovesofRivalsKeySuccessFactorsConclusions:OverallIndustryAttractivenessConductinganIndustryandCompetitiveAnalysisGoodSituationAnalysisLeadstoGoodStrategicChoices1.Industry’sdominanteconomictraits2.Natureofcompetition&strengthofcompetitiveforces3.Driversofindustrychange4.Competitivepositionofrivals5.Strategicmovesofrivals6.Keysuccessfactors7.Conclusionsaboutindustryattractiveness(Chapter2)AssessIndustry&CompetitiveConditions1.Assessmentofcompany’spresentstrategy2.Strengths,weaknesses,opportunities,&threats3.Company’scostscomparedtorivals4.Strengthofcompany’scompetitiveposition5.Strategicissuestobeaddressed(Chapter3)AssessCompanySituation

IdentifyStrategicOptionsfortheCompanySelecttheBestStrategyfortheCompany-Competitive/BusinessUnitOptionsChapter4&otherChaptersQuestion1:WhatArethe

Industry’sDominantEconomicTraits?Marketsizeand

growthrate(Scopeofcompetitiverivalry)Numberofcompetitors

andtheirrelativesizesPrevalence(流行）

ofbackward/forwardintegrationEntry/exitbarriersNatureandpaceoftechnologicalchangeProductandcustomercharacteristicsScaleeconomiesandexperiencecurveeffectsCapacityutilizationandresourcerequirements(Industryprofitability)TheExperienceCurveEffectAnexperiencecurveexistswhenunitcostsdeclineascumulativeproductionvolumeincreasesbecauseofAccumulatingproductionknow-howGrowingmasteryofthetechnologyThebiggertheexperiencecurveeffect,thebiggerthecostadvantageofthefirmwiththelargestcumulativeproductionvolumeCostAdvantagesof

DifferentExperienceCurveEffects$1$9.729.512.34310%CostReduction20%CostReduction30%CostReduction1MillionUnits2MillionUnits4MillionUnits8MillionUnitsCostperUnitRelevanceof

KeyEconomicFeaturesEconomicFeatureMarketSizeMarketgrowthrateCapacitysurpluses/shortagesIndustryprofitabilityEntry/exitbarriersProductisbig-ticketitemforbuyersStandardproductsRapidtechnologicalchangeCapitalrequirementsVerticalintegrationEconomiesofscaleRapidproductinnovationStrategicImportanceSmallmarketsdon’ttendtoattractnewfirms;largemarketsattractfirmslookingtoacquirerivalswithestablishedpositionsinattractiveindustriesFastgrowthbreedsnewentry;slowgrowthspawns（孕育）increasedrivalry&shake-outofweakrivalsSurplusespushprices&profitmarginsdown;shortagespullthemupHigh-profitindustriesattractnewentrants;depressedconditionsleadtoexitHighbarriersprotectpositionsandprofitsofexistingfirms;lowbarriersmakeexistingfirmsvulnerabletoentryMorebuyerswillshopforlowestprice(big-ticket=highprice)Buyershavemorepowerbecauseit’seasiertoswitchfromsellertosellerRaisesrisk;investmentsintechnologyfacilities/equipmentmaybecomeobsoletebeforetheywearoutBigrequirementsmakeinvestmentdecisionscritical;timingbecomesimportant;createsabarriertoentryandexitRaisescapitalrequirements;oftencreatescompetitive&costdifferencesamongfullyvs.partiallyvs.non-integratedfirmsIncreasesvolume&marketshareneededtobecostcompetitiveShortensproductlifecycle;increasesriskbecauseofopportunitiesforleapfroggingQuestion2:WhatisCompetitionLike&HowStrongAretheCompetitiveForces?ToidentifyMainsourcesofcompetitiveforcesStrengthoftheseforcesKeyanalyticaltoolFiveForcesModelofCompetitionObjectiveFiveForcesModelofCompetitionSubstituteProducts(offirmsinotherindustries)RivalryAmongCompetingSellersPotentialNewEntrantsSuppliersofKeyInputsBuyersSubstituteProducts(offirmsinotherindustries)RivalryAmongCompetingSellersPotentialNewEntrantsBargainingPowerandLeverageofSuppliersofKeyInputs

BargainingPowerandLeverageofBuyersAnalyzingtheFiveCompetitiveForces:HowtoDoItAssessstrengthofeachcompetitiveforce(Strong?Moderate?Weak?)RivalryamongcompetitorsSubstituteproductsPotentialentryBargainingpowerofsuppliersBargainingpowerofbuyersExplainhoweachforceactstocreatecompetitivepressureDecidewhetheroverallcompetitionisbrutal,fierce,strong,normal/moderate,orweakandhowcaninfluencefutureperformanceofthecompetingcompaniesRivalryAmongCompetingSellersUsuallythemostpowerfulofthefiveforcesCheckwhichweaponsofcompetitiverivalryaremostactivelyusedbyrivalsinjockeying（（嗣机寻找）forpositionPriceQualityPerformancefeaturesofferedCustomerserviceWarranties/guaranteesAdvertising/promotionsDealernetworksProductinnovationWhatCausesRivalrytoBeStronger?SlowmarketgrowthCostsmoretogetoutofbusinessthantostayin(Exitbarriers)Industryconditionstempt（诱惑）somefirmstogoontheoffensivetoboostvolumeandmarketshare(ScaleEconomiesorLearningCurvetobeachieved)Asuccessfulstrategicmovecarriesabigpayoff（（决定性招数数）Oneormorefirmsinitiatesmovestobolster（（支持）theirstandingatexpenseofrivalsCustomershavelowcostsinswitchingbrandsLotsoffirms,moreequalinsizeandcapabilityFirmshavediversestrategies,corporatepriorities,resources,andcountriesoforiginCompetitiveForceofPotentialEntrySeriousnessofthreatdependsonAttractivenessoftheindustryforthenewentrantBarrierstoentryReactionofexistingfirmstoentryBarriersexistwhenNewcomersconfrontobstaclesEconomicfactorsputpotentialentrantatadisadvantagerelativetoincumbentfirmsCommonBarrierstoEntryEconomiesofscaleInabilitytogainaccesstospecializedtechnologyExistenceoflearning/experiencecurveeffectsStrongbrandpreferencesandcustomerloyaltyCapitalrequirementsand/orotherspecializedresourcerequirementsCostdisadvantagesindependentofsizeAccesstodistributionchannelsRegulatorypolicies,tariffs,traderestrictionsPrincipleofCompetitiveMarketsThreatofentryisstrongerwhen:EntrybarriersarelowSizablepoolofentrycandidatesexistsIncumbentsareunwillingorunabletocontestanewcomer’’sentryeffortsNewcomercanexpecttoearnattractiveprofitsCompetitiveForceof

SubstituteProductsSubstitutesmatterwhencustomersareattractedtotheproductsoffirmsinotherindustriesConceptEyeglassesvs.ContactLensSugarvs.ArtificialSweetenersPlasticvs.Glassvs.MetalNewspapersvs.TVvs.InternetExamplesHowtoTellWhetherSubstituteProductsAreaStrongForceSalesofsubstitutesaregrowingrapidlyProducersofsubstitutesareplanningtoaddnewcapacityTheirprofitsareup(theircapabilitytoproducethemwithbestqualityandminorpricesincreases)PrincipleofCompetitiveMarketsThecompetitivethreatofsubstitutesisstrongerwhentheyare:ReadilyavailableAttractivelypricedBelievedtohavecomparableorbetterperformancefeaturesCustomerswitchingcostsarelowCompetitiveForceofSuppliersSuppliersareastrongcompetitiveforcewhen:Itemmakesuplargeportionofproductcosts,iscrucialtoproductionprocess,and/orsignificantlyaffectsproductqualityItiscostlyforbuyerstoswitchsuppliersTheyhavegoodreputationsandgrowingdemandTheycansupplyacomponentcheaperthanindustrymemberscanmakeitthemselvesTheydonothavetocontend(compete)withsubstitutesBuyingfirmsarenotimportantcustomersPrincipleofCompetitiveMarketsSuppliersareastrongerforcethemoretheycanexercisepowerover:PriceschargedQuality/performanceofitemssuppliedAmountsanddeliverytimesCompetitiveForceofBuyersBuyersareastrongcompetitiveforcewhen:Theyarelargeandpurchaseasizablepercentageofindustry’’sproductTheybuyinvolumequantitiesTheycanintegratebackwardIndustry’’sproductisstandardizedTheircostsinswitchingtosubstitutesorotherbrandsarelowTheycanpurchasefromseveralsellersProductpurchaseddoesnotsavebuyermoneyPrincipleofCompetitiveMarketsBuyersareastrongercompetitiveforcethemoretheyhaveleveragetobargainover:PriceQualityServiceOthertermsandconditionsofsaleStrategicImplicationsoftheFiveCompetitiveForcesCompetitiveenvironmentisunattractivewhen:RivalryisstrongEntrybarriersarelowCompetitionfromsubstitutesisstrongSuppliersandcustomershaveconsiderablebargainingpowerStrategicImplicationsoftheFiveCompetitiveForcesCompetitiveenvironmentisidealwhen:RivalryismoderateEntrybarriersarehighGoodsubstitutesdonotexistSuppliersandcustomersareinaweakbargainingpositionQuestion3:WhatForcesAreatWorktoChangeIndustryConditions?IndustrieschangebecauseforcesaredrivingindustryparticipantstoaltertheiractionsDrivingforcesarethemajorunderlyingcausesofchangingindustryandcompetitiveconditionsAnalyzingDrivingForces1.Identifythoseforceslikelytoexertgreatestinfluenceovernext1-3yearsUsuallynomorethan3-4factorsqualify2.AssessimpactWhatdifferencewilltheforcesmake(favorable?unfavorable?)CommonTypesofDrivingForces(I)Changesinlong-termindustrygrowthrateChangesinwhobuystheproductandhowtheyuseitProductinnovationTechnologicalchange/processinnovationMarketinginnovationEntryorexitofmajorfirmsDiffusion(传播）oftechnicalknowledgeCommonTypesofDrivingForces(II)IncreasingglobalizationofindustryChangesincostandefficiencyMarketshiftfromstandardizedtodifferentiatedproducts(orviceversa)Newregulatorypoliciesand/orgovernmentlegislationChangingsocietalconcerns,attitudes,andlifestylesChangesindegreeofuncertaintyandriskQuestion7:IstheIndustryAttractiveorUnattractiveandWhy?Developconclusionsaboutwhethertheindustryandcompetitiveenvironmentisattractiveorunattractive,bothnear-andlong-term,forearninggoodprofitsObjectivePrincipleAfirmuniquelywell-suitedinanotherwiseunattractiveindustrycan,undercertaincircumstances,stillearnunusuallygoodprofitsThingstoConsiderinAssessingIndustryAttractivenessIndustry’smarketsizeandgrowthpotentialWhethercompetitiveconditionsareconducive（有益）torising/fallingindustryprofitabilityWillcompetitiveforcesbecomestrongerorweakerWhetherindustrywillbefavorablyorunfavorablyimpactedbydrivingforcesPotentialforentry/exitofmajorfirmsStability/dependabilityofdemandSeverityofproblemsfacingindustryDegreeofriskanduncertaintyinindustry’’sfutureConductinganIndustryandCompetitiveSituationAnalysisTwothingstokeepinmind:1.Evaluatingindustryandcompetitiveconditionscannotbereducedtoaformula-likeexercise--thoughtfulanalysisisessential2.Sweeping（彻底的））industryandcompetitiveanalysesneedtodoneevery1to3years9、静夜四无邻邻，荒居旧业业贫。。12月-2212月-22Tuesday,December20,202210、雨中黄叶树树，灯下白头头人。。23:28:2923:28:2923:2812/20/202211:28:29PM11、以我我独沈沈久，，愧君君相见见频。。。12月月-2223:28:2923:28Dec-2220-Dec-2212、故人人江海海别，，几度度隔山山川。。。23:28:2923:28:2923:28Tuesday,December20,202213、乍见见翻疑疑梦，，相悲悲各问问年。。。12月月-2212月月-2223:28:2923:28:29December20,202214、他乡乡生白白发，，旧国国见青青山。。。20十十二二月202211:28:29下下午午23:28:2912月月-2215、比比不不了了得得就就不不比比，，得得不不到到的的就就不不要要。。。。。。十二二月月2211:28下下午午12月月-2223:28December20,202216、行行动动出出成成果果，，工工作作出出财财富富。。。。2022/12/2023:28:2923:28:2920December202217、做前，，能够环环视四周周；做时时，你只只能或者者最好沿沿着以脚脚为起点点的射线线向前。。。11:28:29下下午11:28下下午23:28:2912月-229、没有失失败，只只有暂时时停止成成功！。。12月-2212月-22Tuesday,December20,202210、很多事情努努力了未必有有结果，但是是不努力却什什么改变也没没有。。23:28:2923:28:2923:2812/20/202211:28:29PM11、成成功功就就是是日日复复一一日日那那一一点点点点小小小小努努力力的的积积累累。。。。12月月-2223:28:2923:28Dec-2220-Dec-2212、世世间间成成事事，，不不求求其其绝绝对对圆圆满满，，留留一一份份不不足足，，可可得得无无限限完完美美。。。。23:28:2923:28:2923:28Tuesday,December20,202213、不不知知香香积积寺