产业和竞争力分析

INDUSTRY AND COMPETITIVE ANALYSIS CHAPTER 2“Analysis is the critical starting point of strategic thinking.”“Quote”Chapter OutlineRole of Situation Analysis in Strategy-MakingMethods of Industry and Competitive AnalysisIndustrys Dominant Economic TraitsIndustrys Competitive ForcesDrivers of Industry ChangeCompetitive Positions of RivalsCompetitive Moves of Rivals Key Success FactorsConclusions:Overall Industry AttractivenessConducting an Industry and Competitive AnalysisGood Situation Analysis Leads to Good Strategic Choices1.Industrys dominant economic traits2.Nature of competition&strength of competitive forces3.Drivers of industry change4.Competitive position of rivals5.Strategic moves of rivals6.Key success factors7.Conclusions about industry attractiveness(Chapter 2)Assess Industry&Competitive Conditions1.Assessment of companys present strategy2.Strengths,weaknesses,opportunities,&threats3.Companys costs compared to rivals4.Strength of companys competitive position5.Strategic issues to be addressed(Chapter 3)Assess Company Situation IdentifyStrategic Optionsfor the Company Select the Best Strategyfor the Company-Competitive/Business Unit OptionsCompetitive/Business Unit OptionsChapter 4&other ChaptersChapter 4&other ChaptersQuestion 1:What Are theIndustrys Dominant Economic Traits?Market size and growth rate(Scope of competitive rivalry)Number of competitors and their relative sizesPrevalence(流行）of backward/forward integrationEntry/exit barriersNature and pace of technological changeProduct and customer characteristicsScale economies and experience curve effectsCapacity utilization and resource requirements(Industry profitability)The Experience Curve EffectAn experience curve exists when unit costs decline as cumulative production volume increases because ofAccumulating production know-how Growing mastery of the technology The bigger the experience curve effect,the bigger the cost advantage of the firm with the largest cumulative production volumeCost Advantages ofDifferent Experience Curve Effects$1$1.90.80.70.81.64.49.729.512.34310%CostReduction20%CostReduction30%CostReduction1MillionUnits2MillionUnits4MillionUnits8MillionUnitsCost per UnitRelevance ofKey Economic FeaturesEconomic FeatureMarket SizeMarket growth rateCapacity surpluses/shortagesIndustry profitabilityEntry/exit barriersProduct is big-ticket item for buyersStandard productsRapid technological changeCapital requirementsVertical integrationEconomies of scaleRapid product innovationStrategic ImportanceSmall markets dont tend to attract new firms;large markets attract firms looking to acquire rivals with established positions in attractive industries Fast growth breeds new entry;slow growth spawns（孕育）孕育）increased rivalry&shake-out of weak rivalsSurpluses push prices&profit margins down;shortages pull them upHigh-profit industries attract new entrants;depressed conditions lead to exitHigh barriers protect positions and profits of existing firms;low barriers make existing firms vulnerable to entryMore buyers will shop for lowest price (big-ticket=high price)Buyers have more power because its easier to switch from seller to sellerRaises risk;investments in technology facilities/equipment may become obsolete before they wear outBig requirements make investment decisions critical;timing becomes important;creates a barrier to entry and exitRaises capital requirements;often creates competitive&cost differences among fully vs.partially vs.non-integrated firmsIncreases volume&market share needed to be cost competitiveShortens product life cycle;increases risk because of opportunities for leapfroggingQuestion 2:What is Competition Like&How Strong Are the Competitive Forces?To identifyMain sources of competitive forcesStrength of these forcesKey analytical toolFive Forces Model of CompetitionObjectiveFive Forces Model of CompetitionSubstituteProducts(of firms inother industries)RivalryAmongCompetingSellersPotentialNewEntrantsSuppliers of Key InputsBuyersSubstituteProducts(of firms inother industries)RivalryAmongCompetingSellersPotentialNewEntrantsBargaining Power and Leverage of Suppliers of Key Inputs Bargaining Power and Leverage of BuyersAnalyzing the Five Competitive Forces:How to Do ItAssess strength of each competitive force(Strong?Moderate?Weak?)Rivalry among competitorsSubstitute productsPotential entryBargaining power of suppliersBargaining power of buyersExplain how each force acts to create competitive pressureDecide whether overall competition is brutal,fierce,strong,normal/moderate,or weak and how can influence future performance of the competing companiesRivalry Among Competing SellersUsually the most powerful of the five forcesCheck which weapons of competitive rivalry are most actively used by rivals in jockeying（嗣机寻找）for positionPriceQualityPerformance features offeredCustomer serviceWarranties/guaranteesAdvertising/promotionsDealer networksProduct innovationWhat Causes Rivalry to Be Stronger?Slow market growth Costs more to get out of business than to stay in(Exit barriers)Industry conditions tempt（诱惑）诱惑）some firms to go on the offensive to boost volume and market share(Scale Economies or Learning Curve to be achieved)A successful strategic move carries a big payoff（决定性招数决定性招数）One or more firms initiates moves to bolster（支持）支持）their standing at expense of rivalsCustomers have low costs in switching brands Lots of firms,more equal in size and capabilityFirms have diverse strategies,corporate priorities,resources,and countries of originCompetitive Force of Potential EntrySeriousness of threat depends onAttractiveness of the industry for the new entrantBarriers to entryReaction of existing firms to entryBarriers exist whenNewcomers confront obstaclesEconomic factors put potential entrant at a disadvantage relative to incumbent firmsCommon Barriers to EntryEconomies of scaleInability to gain access to specialized technologyExistence of learning/experience curve effectsStrong brand preferences and customer loyaltyCapital requirements and/or other specialized resource requirementsCost disadvantages independent of sizeAccess to distribution channelsRegulatory policies,tariffs,trade restrictionsPrinciple of Competitive Markets Threat of entry is stronger when:4Entry barriers are low4Sizable pool of entry candidates exists4Incumbents are unwilling or unable to contest a newcomers entry efforts 4Newcomer can expect to earn attractive profitsCompetitive Force ofSubstitute ProductsSubstitutes matter when customers are attracted to the products of firms in other industries Concept4Eyeglasses vs.Contact Lens4Sugar vs.Artificial Sweeteners4Plastic vs.Glass vs.Metal4Newspapers vs.TV vs.InternetExamplesHow to Tell Whether Substitute Products Are a Strong ForceSales of substitutes are growing rapidlyProducers of substitutes are planning to add new capacity Their profits are up(their capability to produce them with best quality and minor prices increases)Principle of Competitive MarketsThe competitive threat of substitutes is stronger when they are:Readily available Attractively pricedBelieved to have comparable or better performance featuresCustomer switching costs are lowCompetitive Force of SuppliersSuppliers are a strong competitive force when:Item makes up large portion of product costs,is crucial to production process,and/or significantly affects product qualityIt is costly for buyers to switch suppliersThey have good reputations and growing demandThey can supply a component cheaper than industry members can make it themselves They do not have to contend(compete)with substitutesBuying firms are not important customersPrinciple of Competitive MarketsSuppliers are a stronger force the more they can exercise power over:Prices chargedQuality/performance of items suppliedAmounts and delivery timesCompetitive Force of BuyersBuyers are a strong competitive force when:They are large and purchase a sizable percentage of industrys productThey buy in volume quantitiesThey can integrate backwardIndustrys product is standardizedTheir costs in switching to substitutes or other brands are lowThey can purchase from several sellersProduct purchased does not save buyer money Principle of Competitive MarketsBuyers are a stronger competitive force the more they have leverage to bargain over:PriceQualityServiceOther terms and conditions of saleStrategic Implications of theFive Competitive ForcesCompetitive environment is unattractive when:Rivalry is strongEntry barriers are lowCompetition from substitutes is strongSuppliers and customers have considerable bargaining powerStrategic Implications of theFive Competitive ForcesCompetitive environment is ideal when:Rivalry is moderateEntry barriers are highGood substitutes do not existSuppliers and customers are in a weak bargaining positionQuestion 3:What Forces Are atWork to Change Industry Conditions?Industries change because forces are driving industry participants to alter their actionsDriving forces are the major underlying causes of changing industry and competitive conditions Analyzing Driving Forces1.Identify those forces likely to exert greatest influence over next 1-3 years Usually no more than 3-4 factors qualify2.Assess impactWhat difference will the forces make(favorable?unfavorable?)Common Types of Driving Forces(I)Changes in long-term industry growth rateChanges in who buys the product and how they use itProduct innovationTechnological change/process innovationMarketing innovationEntry or exit of major firmsDiffusion(传播）of technical knowledgeCommon Types of Driving Forces(II)Increasing globalization of industryChanges in cost and efficiencyMarket shift from standardized to differentiated products(or vice versa)New regulatory policies and/or government legislationChanging societal concerns,attitudes,and lifestylesChanges in degree of uncertainty and riskQuestion 7:Is the IndustryAttractive or Unattractive and Why?Develop conclusions about whether the industry and competitive environment is attractive or unattractive,both near-and long-term,for earning good profitsObjectivePrincipleA firm uniquely well-suited in an otherwise unattractive industry can,under certain circumstances,still earn unusually good profitsThings to Consider inAssessing Industry AttractivenessIndustrys market size and growth potentialWhether competitive conditions are conducive（有益）to rising/falling industry profitabilityWill competitive forces become stronger or weaker Whether industry will be favorably or unfavorably impacted by driving forcesPotential for entry/exit of major firmsStability/dependability of demandSeverity of problems facing industryDegree of risk and uncertainty in industrys futureConducting an Industry andCompetitive Situation AnalysisTwo things to keep in mind:1.Evaluating industry and competitive conditions cannot be reduced to a formula-like exercise-thoughtful analysis is essential2.Sweeping（彻底的）industry and competitive analyses need to done every 1 to 3 years