Business level strategy analysis

Slideshow Transcript

1. Slide 1: BUSINESS LEVEL STRATEGY ANALYSIS w The Positioning Approach. ½ Porter’s 5 Forces. ½ Value Chain Analysis. ½ The Generic Strategies.
2. Slide 2: The Positioning Approach • The oldest approach to military strategy. • The newest of the three prescriptive approaches to strategy. – Design and Planning Approaches were explained in Chapter 3. • Focuses on how firms in a given context differ in product market positions compared to the competition.
3. Slide 3: Premises of The Positioning Approach • Strategy follows structure. • Looks at the groups of competitors in an industry. • Relies more heavily on calculation than the design or planning schools. • Places even more emphasis on the role of strategic planners.
4. Slide 4: Porter’s Five Forces Analysis Breaking Apart Industry-Level Competition
5. Slide 5: Porter’s Five Forces Analysis Threat of Entry
6. Slide 6: The 6 Barriers of Entry Economies of Scale. Product Differentiation. Capital Requirements. Cost Disadvantages Independent of Size. Access to Distribution Channels. Government Policy.
7. Slide 7: Porter’s Five Forces Analysis Power of Buyers
8. Slide 8: Buyer Power Determinants Bargaining Leverage. Buyer Concentration Buyer Volume. Buyer Switching Costs. Buyer Information. Ability to Integrate Backward. Substitute Products. Pull-Through.
9. Slide 9: Buyer Power Determinants Price Sensitivity. Price/Total Purchases Product Differences. Brand Identity. Impact on Quality/Performance. Buyer Profits. Decision-Maker’s Incentives.
10. Slide 10: Porter’s Five Forces Analysis Power of Suppliers
11. Slide 11: Supplier Power Determinants • Differentiation of Inputs. • Switching Costs of Suppliers. • Presence of Substitute Products. • Supplier Concentration. • Importance of Volume to Supplier. • Cost Relative to Total Purchases in the Industry. • Impact of Inputs on Cost or Differentiation.
12. Slide 12: Porter’s Five Forces Analysis Power of Substitutes
13. Slide 13: Power of Substitutes Relative Price Performance of Substitute. Switching Costs. Buyer Propensity to Substitute.
14. Slide 14: Porter’s Five Forces Analysis Competitive Rivalry
15. Slide 15: Determinants of Rivalry • Industry Growth. • Fixed Costs/Value Added. • Intermittent Overcapacity. • Product Differences. • Brand Identity. • Switching Costs. • Concentration and Balance. • Informational Complexity. • Diversity of Competitors. • Corporate Stakes. • Exit Barriers.
16. Slide 16: Determinants of Rivalry Competition is Everything!!! • Industry Growth. • Fixed Costs/Value Added. • Intermittent Overcapacity. • Product Differences. • Brand Identity. • Switching Costs. • Concentration and Balance. • Informational Complexity. • Diversity of Competitors. • Corporate Stakes. • Exit Barriers.
17. Slide 17: Value Chain Analysis Figure 3
18. Slide 18: Ma Ma r rgii n iin gn rg n rg Ma Ma ce ce rvi rvi Se Se Value Chain Analysis Primary Activities g ng tn etii rke s rk s Ma a e Ma Salle &S & d nd un ou tbo cs tb tiics Ou g st Ou giis Lo Lo s s on ion ati at er er Op Op d nd un s ou cs bo tiic nb g st IIn giis Lo Lo Figure 3
19. Slide 19: Ma Ma r rgii n iin gn rg n rg Ma Ma ce ce rvi rvi Se Se Value Chain Analysis Human Resource Management Primary Activities g ng tn Technology Development etii rke s rk s Ma a e Ma Salle &S & Procurement Procurement d nd un ou tbo cs tb tiics Ou g st Ou giis Lo