Class Session 1

ICLA
This reading material has been prepared to teach the Industry Competitive Landscape Analysis course in Trim. 2 to 1 st year full-time MBA students of NMIMS (2023-24 batch) of Division L and Division G, and is intended for their study and learning.
Conveying the contents of these to anyone else, or the use of these for any other purpose, is expressly prohibited
A good place to start …..
• What do we understand by strategy?
• I.e., Organizational Strategy
Strategy – a generalised definition..
• A set of directions that an organization
• evolves for its business(es), and
• executes as a part of its business (es)
• Directions which guide and cover
• products to be provided and markets to be served,
• the manner in which these may be provided and served, and
• the capabilities, resources required, and
• the development and management of these
• Why do we refer to strategy as ‘directions’…. and not as ‘plans’
Why do we refer to strategy as ‘directions’…. and
not as ‘plans and targets’?
• ‘Directions’ – are ‘ways forward’ , ‘paths ahead’, choices

• Some of these directions may also be in the nature of plans and targets
• but not generally, and not all of them
• Strategy as directions (not restricted to highly specific ‘plans’) guide

the organization to explore alternative opportunities, be ambitious
• They provide a context for the organization to get into uncharted waters, and explore
and learn
• Many areas with future earnings’ potential are of this variety
• The broadest directions are the vision and mission statements

• But strategic directions are not all of them lofty and at an abstract level
Strategy necessarily comprises ‘directions’
• Examples:
• A company in the banking business
• may set a strategic direction to straddle the entirety of the banking, financial services and insurance
businesses
• e.g., General and Life Insurance (competitors – LIC, GIC, Star Insurance, Care, Max etc.)
• Financial services - Investment and broking, credit cards,
• Fintech
• A company such as Mahindra in the utility vehicle business–

• entering Defence, Infotech, Real Estate, Finance
• and setting up businesses in international markets – emerging and developed countries
• A single-business manufacturing company, present in a few market segments, no.3 or 4 by

market share in India - may set a strategic direction
• to achieve value leadership in its core business
• straddle multiple segments in its core business, and
• develop new go – to – market approaches, new products, and new manufacturing technologies
• We have so far focused more on strategy as something that
organizations have…
• And a little less on strategy as something that organizations also do….
• What is strategy as something that organizations do?
Understanding Strategy….
The directionality in
1. Strategy is something that organizations have…. strategy as
• A vision, mission, and directions (these include ‘plans’) something that
• and ways to reach these organizations have,
and as something
2. Strategy is also something that organizations do…..
that organizations do
• In order to formulate and develop the above - flows vertically
• The process of strategy formulation and development
down from
• Research, study, understand, get insights
strategy that
• Undertake pilot projects and strategic initiatives
organizations have
3. Another element to Strategy as something that organizations - to that which they
do… do, and
- to that which they
• Executing and implementing strategy
implement
• Including some elements which are part of operating plans
Understanding Strategy…. The directionality also
flows in the reverse
Directionality of different elements direction…
1. Strategy is something that organizations have….

Execution
• A vision, mission, objectives Influences
• and ways to reach these /Changes/
2. Strategy is also something that organizations do….. Evolves
Strategy
• In order to formulate and develop the above
• The process of strategy formulation and development
• Research, study, understand, get insights
• Undertake pilot projects and strategic initiatives
3. Another element to Strategy as something that organizations do…
• Executing and implementing strategy
• Including some elements which are part of operating plans
The desired outcome of strategy….
• The purpose of strategy –
• to ensure that the company moves to achieve its vision and goals, as a route
to
• sustaining performance, growing earnings and achieving high market
valuation
The broad categories in which we can classify
the work of strategy development
• External, and
• Internal
• Or
• The External Environment and the Industry view, and

• The firm-based view
Let us begin by examining the External,
Industry View
The External, Industry View – The industry at
a high level of aggregation… Sectors
• Sectors in Manufacturing: • Sectors in Services:
• Petrochemicals: • Warehousing, Transportation,
• Metals Logistics
• Building and Construction • Information Technologies
Materials • Retail
• Consumer Products • Banking and Financial Services
Industries may be at a level of aggregation below these sectors –

• e.g., Building and Construction Materials Sector : Cement Industry
• Banking and Financial Services Sector : Mutual Funds Industry.
The description of industry is more technical than this – we will examine this further in
due course
Used in assessing long term
Sectors and Industries: The Industry growth/firm revenue and
importance of sectors to sales growth
strategy at a broad level An aggregated view of demand in

the long run is more reliable than
a granular long-term estimate
Sectoral trends in important areas

are likely to impact all participants
in the sector similarly:
Customer, Technology,
Government, Environment, Social
Sectoral analysis also enables a

firm to understand opportunities
for businesses and markets for
diversification as part of future
strategy
From a strategic perspective, it is the industry view
that is unequivocally integrated with firm
strategy….
….let us understand the industry view better…
What is the Industry-based view of strategy?
• Let us explore the industry-based view of strategy for a firm
• We will attempt to do this through an illustration..
• Consider a firm in the electrical products business
• Let us explore strategy formulation for this firm which has an ongoing
business in electrical products
• What will be the starting point of such a firm’s strategy?
A single product-range firm in the electrical
products business…. a starting point for its
business strategy…
• For our hypothetical single product-range firm with an ongoing
business (which we will call ‘OURCO.’), one starting point is based on
customer-related needs and related metrics and information
• Who are the customers
• What are current, potential and latent customer needs?
• How much of these am I satisfying?
• How much of these can I potentially satisfy
• Over 1 , 2 , 3 years ……
• Therefore,
• What are my goals/ambitions
• What do I need at firm-level to achieve these – technology, men/material/money
resources, capabilities etc.
A firm in the electrical products business…. a
starting point for its strategy…
• Thus, one starting point is based on
Our electrical
products
company and its
brands/products
Focused on
Buyers
Why does this approach represent only part of strategy formulation?

OURCO in the Electrical Products business…. we have
seen a possible starting point for its strategy… What is
required to complete the approach?
• OURCO does not operate in a vacuum
• We need to understand the competing firms with the same offerings
• Moreover, OURCO may not operate with just one product
• Hence, we need to look beyond the dyad of the buyer and
firm/product combination
The competing firms’ individual as well as collective impact on the
strategy of our firm – i.e., any firm in the industry
And impact through multiple aspects, not just the buyer, leads to…
A Bilateral strategy Becoming multi-lateral

situation ….. Industry Defined:
An electrical The electrical products

An electrical
products ‘industry’ : more generally,
company and
company and its an ‘industry’ is a set of
inter-firm
brands/products firms meeting similar
competition
customer needs through a
similar set of products or
substitutes
Buyers
Buyers
Who are the competing firms of OURCO?

The electrical industry – the different firms in the
industry
Limited range - specialists

Syska : Only Wires, Lights , Fans
KEI Cables – Only Electrical wires and cables
RR Kabel : Only Electrical wires and cables
Legrand : Only electrical switches , sockets, plugs
OURCO : Wires, cables, switches, distribution boxes
As can be seen, there are different firms with different product ranges in the industry.
OURCO in the Electrical Products business …. The
competing companies and brands
Anchor V Guard
Finolex Havells
Polycab
Syska
KEI Cables
Legrand Others
(Several)
The electrical industry – the different firms in the
industry
Limited range - specialists

Syska : Only Wires, Lights , Fans
KEI Cables – Only Electrical wires and cables
RR Kabel : Only Electrical wires and cables
Legrand : Only electrical switches , sockets, plugs
OURCO : Wires, cables, switches
Should OURCO consider only its product range as sold by these companies?
OURCO in the Electrical Products business …. The
How do these firms compete?
competing companies and brandsThe competing firms have –
• Different technological strengths
• Different, higher or lower , levels of

resources – financial, human and
Anchor V Guard organizational capital
Finolex Havells • Different cost structures and

Polycab economies of scale and scope
• Differing strategies and ambitions of

Syska market share and/or earnings.
KEI Cables • The competing firms have an

Legrand Others individual as well as collective impact
on the strategy of our firm
(Several)
• An impact that is mediated through
multiple aspects of business – not just
This reading material has been prepared to teach the Industry Competitive Landscape Analysis course in Trim. 2 to 1 st
the consumer
year full-time MBA students of NMIMS (2023-24 batch) of Division L and Division G, and is intended for their study and learning.
How the firms in the industry affect the
industry and other firms…
• The industry view of strategy takes into account the entirety of the
firms in the industry and their characteristics
• and is not restricted to buyers,
• The industry-view of strategy is not restricted to the products offered
by firms alone
• and should not be analysed through a unidimensional product-based
approach
OURCO in the Electrical Products business…. The
competing Electrical Product companies and brands
Anchor V Guard
Finolex Havells
Polycab
Syska
KEI Cables
Legrand Others
(Several)
The view from the lens of ‘firms in the industry’ is but the genesis of the industry
This reading material has been prepared to teach the Industryview ofLandscape
Competitive strategy st
Analysis course in Trim. 2 to 1 year full-time MBA students of NMIMS (2023-24 batch) of Division L and Division G, and is intended for their study and learning.
Inter-firm competition is but the genesis of the firm’s
strategy from the lens of the industry… what lies further
Buyers
An electrical
products and
Suppliers
inter-firm
competition
Strategy for share of business, revenues and earnings are critically dependent not only on inter-firm
competition ….. But also on other industry-related aspects :
One of which relates to suppliers of input materials and services to the industry
For e.g., Our An electrical products company needs to get circuit-breaker contacts of the required sensitive
quality, and make its switches with quality cost-effective components – sourcing itself is an element of
strategy
Inter-firm competition and suppliers determine the firm’s
strategy from the lens of the industry… what lies further
Buyers
An electrical
Potential Entrants products and
: e.g., Chinese Suppliers
inter-firm
electrical products competition
companies –
Substitutes to
The strategies of firms
the industry’s
would also be
products – e.g.
influenced by
e.g. IoT as
impending new
replacement for
entrants and strategies
switches and
of substitute products
wires
st
This reading material has been prepared to teach the Industry Competitive Landscape Analysis course in Trim. 2 to 1 year full-time MBA students of NMIMS (2023-24 batch) of Division L and Division G, and is intended for their study and learning.
This is the view of the industry and external elements impacting the
strategies of all firms in the industry: This is the well-known Michael
Porter’s framework - we will study this in detail in Session 3
Buyers
Potential Entrants An electrical

: e.g., Chinese products and Suppliers
electrical products inter-firm
companies – a la competition
the mobile phone
industry
Substitutes to
the industry’s - All these elements (forces) also need to be
products – e.g. analysed together ; this helps understand the
e.g. IoT as nature of competiton in the industry, and the
replacement for overall attractiveness of the industry – we will
switches and study this further in Session 3 & 4
wires
st
This is the view of the industry and external elements impacting the
strategies of all firms in the industry: This is the well-known Michael
Porter’s framework - we will study this in detail in Session 3
Buyers
Potential New
An electrical
Entrants : e.g.,
products and
Chinese electrical Suppliers
inter-firm
products
competition
companies – a la
the mobile phone
industry
Substitutes to the
industry’s This ‘industry-view’ of
products – e.g. firm strategy should be
e.g. IoT as complemented by the
replacement for firm-based view of the
switches and firm’s strategy
wires
st
The firm-based view of a firm’s strategy –
complementing the industry view of the firm’s
strategy
• The firm-based view will cover areas such as the firm’s resources and
capabilities, and how these are instrumental in developing firm strategy
• These firm resources include the firm’s technology resources, its patents
and brands, its knowledge and capabilities, human capital, physical assets
among others,
• Its process and functional knowledge in production, supply chain, finance,
IT, digital, marketing and other theoretically infinite resources
• We will study these in greater detail in the next session
The external environment of a firm in addition to
and beyond the industry and Michael Porter’s
framework….
• What is the external environment of a firm in addition to, and beyond, the
industry and Porter’s framework?
• This includes a whole set of trends and influences in the economy, society
(based on demographics, psychographics, and culture), environment, and
the government
• These need to be studied along with the Michael Porter framework for
impact on industry and firm strategy
• We will do this in Session 4

Let us now consider Netflix – and trace its
development path … to understand the industry in
which it operates
Netflix quickly evolved into a separate
industry by itself
Potential New
Entrants Suppliers
Existing Industry : Cable TV Two
Channel - Entertainment separate
Programs industries
catering to
Substitutes Buyers home and
mobile
Video
Potential New viewing:
Entrants Suppliers Cable TV
Netflix and Other OTT players:
channels
Subscription-based
and OTT
movies/shows streaming
channels
Substitutes Buyers
Two video-viewing entertainment industries
merging into one?
• Most of the Cable TV channels today have a growing OTT channel that
is becoming larger
• Star : Disney Hotstar
• Sony – Sony Liv
• Zee – Zee 5
• TV 18 – VOOT
• Players from other industries :
• Amazon : Amazon Prime Video
• Many of the followers in the OTT space have grown significantly larger
than the innovator - Netflix
Two Home and Mobile video-viewing
industries merging into one..
Potential New
Entrants Suppliers
OTT and Cable TV Channel -

Entertainment Programs
Substitutes Buyers
Today, if we construct the industry boundaries of a TV Channel such

as Star TV, Zee or Sony, this will include the OTT channel

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ICLA

• Why do we refer to strategy as ‘directions’…. and not as ‘plans’

• ‘Directions’ – are ‘ways forward’ , ‘paths ahead’, choices

• Strategy as directions (not restricted to highly specific ‘plans’) guide

• The broadest directions are the vision and mission statements

• A company such as Mahindra in the utility vehicle business–

• A single-business manufacturing company, present in a few market segments, no.3 or 4 by

1. Strategy is something that organizations have….

• The External Environment and the Industry view, and

Industries may be at a level of aggregation below these sectors –

strategy at a broad level An aggregated view of demand in

Sectoral trends in important areas

Sectoral analysis also enables a

….let us understand the industry view better…

Why does this approach represent only part of strategy formulation?

A Bilateral strategy Becoming multi-lateral

An electrical The electrical products

Who are the competing firms of OURCO?

Limited range - specialists

Limited range - specialists

• Different, higher or lower , levels of

Finolex Havells • Different cost structures and

• Differing strategies and ambitions of

KEI Cables • The competing firms have an

Potential Entrants An electrical

• We will study these in greater detail in the next session

• We will do this in Session 4

OTT and Cable TV Channel -

Today, if we construct the industry boundaries of a TV Channel such

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