Global competition impacts industry structure, the degree of competition, and a firm's competitive advantage. A firm's competitive position depends on costs, market share, price, quality, and accumulated experience. Industries can be fragmented, concentrated, or emerging. Fragmented industries have many small firms while concentrated industries are dominated by a few large firms. Emerging industries involve new technologies with challenges like lack of customer understanding and high start-up costs.
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Global competition impacts industry structure, the degree of competition, and a firm's competitive advantage. A firm's competitive position depends on costs, market share, price, quality, and accumulated experience. Industries can be fragmented, concentrated, or emerging. Fragmented industries have many small firms while concentrated industries are dominated by a few large firms. Emerging industries involve new technologies with challenges like lack of customer understanding and high start-up costs.
Global competition impacts industry structure, the degree of competition, and a firm's competitive advantage. A firm's competitive position depends on costs, market share, price, quality, and accumulated experience. Industries can be fragmented, concentrated, or emerging. Fragmented industries have many small firms while concentrated industries are dominated by a few large firms. Emerging industries involve new technologies with challenges like lack of customer understanding and high start-up costs.
Copyright:
Attribution Non-Commercial (BY-NC)
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Download as PPT, PDF, TXT or read online from Scribd
Global competition impacts industry structure, the degree of competition, and a firm's competitive advantage. A firm's competitive position depends on costs, market share, price, quality, and accumulated experience. Industries can be fragmented, concentrated, or emerging. Fragmented industries have many small firms while concentrated industries are dominated by a few large firms. Emerging industries involve new technologies with challenges like lack of customer understanding and high start-up costs.
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– industry structure – degree of competition – firm’s national origin and the competitive advantage of nations • Competitive position – costs, market share, price quality, accumulated experience • Competitive forces - Five Forces Analysis Fragmented Industries • ‘Populated by a large number of Small Medium Enterprises’ Porter • ‘Absence of market leaders with the power to influence events.’ • Where: • low barriers to entry • transport costs are high • local image important etc. • A fragmented industry may become consolidated with: • technological change • standard product preferred over customised one • large publishing companies with small ‘imprints’ • Consolidate naturally with age • Without consolidation a firm can specialise and grow by: • offering a standard product or service • dealing with particular customers • Concentrating on a particular area Concentrated Industries • Dominated by a small number of large firms, exercising significant influence over the market • How does this happen? • Cheap to produce in bulk • Significant resources to stay in business • High barriers to entry etc. • Always a main market leader • influences the way business is done • strong relationship with sources of supply • control over distribution networks Emerging Industries • New or reformed industry • e.g electronic publishing and interactive TV - FT, New York times, Digital TV. • e.g Waste recycling - BMW, Winchester City Council • e.g Internet browsers - Netscape Navigator • e.g Road pricing systems - Toll systems for bridges and motorway • Problems with emerging industries: • lack of faith in technology • innovative product where customer needs are as yet unknown • high initial start up costs • potential customers need to be kept informed of developments • early barriers to entry e.g raw materials • competition for components • customer confusion • Obsolescence • Erratic quality • Scepticism from bankers and investors Which UK digital is best? Waste Recycling? Link in with . . . • Kenichi Ohmae - Globalisation means businesses do not have a nationality, but shared values • Levitt ‘Globalisation of Markets’ • Competitive Advantage of Nations (last week) • Kotler - Where do we go from here?