Chapter 1 – Introducing strategy
Strategy statements
1. fundamental goals
2. scope of activities
3. advantages/capabilities
Levels of strategy
• corporate level strategy
• business level strategy
• functional strategies
Chapter 2 – Macro-environmental analysis
PESTEL analysis
• political
• economic
• social
• technological
• ecological
• legal
Chapter 3 – Industry and sector analysis
Porters five forces framework
1. competitive rivalry
2. threat of entry
3. threat of substitutes
4. power of buyers
5. power of suppliers
Competitive rivalry:
• competitive rivals are organizations aiming at the same customer groups with similar products and services
• factors terminating extent of rivalry
- competitor concentration and balance
- industry growth rate
- high fixed costs
- high exit barriers
- low differentiation
Threat of entry:
• how easy it is to enter industry influences degree of competition
• barriers of entry are factors to overcome by new entrants
- scale and experience
- access to supply or distribution channels
- capital requirements
- legislation or government action
- expected retaliation
Threat of substitutes:
1
, • substitutes are products or services that offer the same or similar function
• factors: extra-industry effects & price/performance ratio
Power of byers:
• buyers are organization’s immediate customers
• buyer power is high with
- concentrated buyers
- low switching costs
- buyer competition threat
- low buyer profits and impact on quality
Power of suppliers:
• suppliers supply organization with what is needed
• supplier power is high with
- concentrated suppliers
- high switching costs
- supplier competition threat
- differentiated products
Complementor:
• complementors are organizations that enhance your business attractiveness to customers or suppliers
Network effects:
• when one customer of a product/service has positive effect on value of that product/service for other customers
• better customer network with more customers using the product/service
Industry types
• monopoly
• oligopoly
• perfect competition
Industrial life cycle
Strategic groups
• organisations within the same industry or sector with similar stra- tegic characteristics, following similar strategies or
competing on similar bases
Market segments
• group of customers who have similar needs that are different from customer needs in other parts of the market
Critical success factors
• actors that either are particularly valued by customers or provide a significant advantage in terms of cost
Blue oceans
• new market spaces where competition is minimized
Chapter 4 – Resources and capability analysis
2
Strategy statements
1. fundamental goals
2. scope of activities
3. advantages/capabilities
Levels of strategy
• corporate level strategy
• business level strategy
• functional strategies
Chapter 2 – Macro-environmental analysis
PESTEL analysis
• political
• economic
• social
• technological
• ecological
• legal
Chapter 3 – Industry and sector analysis
Porters five forces framework
1. competitive rivalry
2. threat of entry
3. threat of substitutes
4. power of buyers
5. power of suppliers
Competitive rivalry:
• competitive rivals are organizations aiming at the same customer groups with similar products and services
• factors terminating extent of rivalry
- competitor concentration and balance
- industry growth rate
- high fixed costs
- high exit barriers
- low differentiation
Threat of entry:
• how easy it is to enter industry influences degree of competition
• barriers of entry are factors to overcome by new entrants
- scale and experience
- access to supply or distribution channels
- capital requirements
- legislation or government action
- expected retaliation
Threat of substitutes:
1
, • substitutes are products or services that offer the same or similar function
• factors: extra-industry effects & price/performance ratio
Power of byers:
• buyers are organization’s immediate customers
• buyer power is high with
- concentrated buyers
- low switching costs
- buyer competition threat
- low buyer profits and impact on quality
Power of suppliers:
• suppliers supply organization with what is needed
• supplier power is high with
- concentrated suppliers
- high switching costs
- supplier competition threat
- differentiated products
Complementor:
• complementors are organizations that enhance your business attractiveness to customers or suppliers
Network effects:
• when one customer of a product/service has positive effect on value of that product/service for other customers
• better customer network with more customers using the product/service
Industry types
• monopoly
• oligopoly
• perfect competition
Industrial life cycle
Strategic groups
• organisations within the same industry or sector with similar stra- tegic characteristics, following similar strategies or
competing on similar bases
Market segments
• group of customers who have similar needs that are different from customer needs in other parts of the market
Critical success factors
• actors that either are particularly valued by customers or provide a significant advantage in terms of cost
Blue oceans
• new market spaces where competition is minimized
Chapter 4 – Resources and capability analysis
2
