Professional Documents
Culture Documents
Module 2
Module 2
External
Environment
of the Firm:
Creating
Competitive
Advantages
Module 2
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education .
Learning Objectives
2-2
Competitive intelligence
Helps firms define & understand their industry
Identify rivals’ strengths & weaknesses
◼ Collect data on competitors
◼ Interpret intelligence data
SWOT analysis
Forces managers to consider both internal &
external factors simultaneously
Makes firms act proactively
Demographic Technological
Sociocultural Economic
Political/Legal Global
The Demographic Segment
2-13
Pollution/global warming
Wireless communications
Nanotechnology
The Economic Segment
2-17
Capital requirements
Switching costs
Type of distribution
Strategic Groups Within Industries
2-31