Professional Documents
Culture Documents
The External Environment
The External Environment
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Sociocultural
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SWOT Analysis
Strengths Weaknesses Opportunities Threats
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Opportunities
An OPPORTUNITY is a chance for firm growth or progress due to a favorable juncture of circumstances in the business environment. Possible Opportunities:
Emerging customer needs Quality Improvements Expanding global markets Vertical Integration
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Threats
A THREAT is a factor in your companys external environment that poses a danger to its well-being. Possible Threats:
New entry by competitors Changing demographics/shifting demand Emergence of cheaper technologies Regulatory requirements
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Supplier industry is dominated by a few firms Suppliers products have few substitutes Buyer is not an important customer to supplier Suppliers product is an important input to buyers product Suppliers products are differentiated Suppliers products have high switching costs Supplier poses credible threat of forward integration
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Competitor Analysis
The follow-up to Industry Analysis is effective analysis of a firms Competitors
Industry Environment Competitive Environment
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Competitor Analysis
Assumptions What assumptions do our competitors hold about the future of industry and themselves? Current Strategy Does our current strategy support changes in the competitive environment? Future Objectives How do our goals compare to our competitors goals? Capabilities How do our capabilities compare to our competitors?
Response
What will our competitors do in the future? Where do we have a competitive advantage? How will this change our relationship with our competition?
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Competitor Analysis
Future Objectives
How do our goals compare to our Where will emphasis competitors goals? be placed in the future? What is the attitude toward risk?
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Competitor Analysis
Future Objectives
How do our goals compare to our Where Current be competitors goals?Strategy will emphasis placed in the future? currently How are we What is the attitude competing? toward risk? Does this strategy support changes in the competitive structure?
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Competitor Analysis
Future Objectives
How do our goals compare to our Where Current be competitors goals?Strategy will emphasis placed in the future? How are we currently What is the attitude competing? Assumptions toward risk? Does this strategy Do we assume the future support changes in the will be volatile? competition structure? What assumptions do our competitors hold about the industry and themselves? Are we assuming stable competitive conditions?
What does the competitor believe about itself and the industry?
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Competitor Analysis
Future Objectives
How do our goals compare to our Where Current be competitors goals?Strategy will emphasis placed in the future? How are we currently What is the attitude competing? Assumptions toward risk? Does this strategy Do we assume the future supportwill be volatile? changes in the competition structure? What assumptions do our competitors hold about the Capabilities industry and themselves? What are my competitors Are we operating under strengths and weaknesses? a status quo? How do our capabilities compare to our competitors?
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Competitor Analysis
Future Objectives
How do our goals compare to our Where Current be competitors goals?Strategy will emphasis placed in the future? How are we currently What is the attitude competing? Assumptions toward risk? Does this strategy Do we assume the future supportwill be volatile? changes in the competition structure? What assumptions do our competitors hold about the Capabilities industry and themselves? What are my competitors Are we operating under strengths and weaknesses? a status quo? How do our capabilities compare to our competitors?
Response
What will our competitors do in the future? Where do we have a competitive advantage? How will this change our relationship with our competition?
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