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External Analysis
External Analysis
f o
a t
P l
External Analysis: Industry
A
Structure, Competitive Forces,
B and Strategic Groups
B
LO 3-6 Explain the five choices required for market entry.
A
LO 3-5 Describe the strategic role of complements in creating positive-sum co-opetition.
LO 3-7 Appraise the role of industry dynamics and industry convergence in shaping the firm’s external
environment.
LO 3-8 Generate a strategic group model to reveal performance differences between clusters of firms in
the same industry.
Copyright © McGraw-Hill Education MJ Maalej | SM
General Environment
r m
How
f o
• Managers have little control
• Macroeconomic factors
External t
• Interest / currency exchange
rates a
Factors
P l
Impact a Task Environment
Firm •B
A
Managers can influence
• Composition of strategic groups
• Industry structure
Factors P l
•Demographic trends
• Population characteristics
B A
• Age, gender, family size,
ethnicity, sexual orientation,
religion, and socioeconomic class
B A
r m
f o
a t
P l
B A
B A
• Rivalry is fierce
• Rivals can only gain at the expense of
one another
Group • P
Graph the firms in the strategic group
la Airline Industry
P Exhibit 3.7
B A