Bài giảng Strategic Management - Chapter 2: Analyzing the External Environment of the Firm: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantageschapter 2Creating the Environmentally Aware Organization2-*Exhibit 2.1 Inputs to ForecastingEnvironmental Scanning & MonitoringEnvironmental scanning involves surveillance of a firm’s external environmentPredicts environmental changes to comeDetects changes already under wayAllows firm to be proactiveEnvironmental monitoring tracks evolution of environmental trendsHard trends – measurable facts/eventsSoft trends – estimated, probable events2-*Competitive IntelligenceCompetitive intelligence Helps firms define & understand their industryIdentify rivals’ strengths & weaknessesCollect data on competitorsInterpret intelligence dataHelps firms avoid surprisesAnticipate competitors’ movesDecrease response timeBeware of the potential for unethical behavior while gathering intelligence2-*Environmental ForecastingEnvironmental forecasting predicts changePlausible projections aboutDirection of environmental change?Scope of environmental change?Speed of environmental change?Intensity of environmental change?Scenario analysis involves detailed assessments of the ways trends may affect an issue & development of alternative futures based on these assessments2-*SWOT AnalysisSWOT analysis is a basic technique for analyzing firm and industry conditionsFirm or internal conditions = Strengths & WeaknessesWhere the firm excels or where it may be lackingEnvironmental or external conditions = Opportunities & ThreatsDevelopments that exist in the general environmentActivities among firms competing for the same customers2-*The General EnvironmentDemographicSocioculturalPolitical/LegalTechnologicalEconomicGlobal2-*The general environment is composed of factors that are both hard to predict and difficult to control:The Competitive EnvironmentThe competitive environment consists of factors in the task or industry environment that are particularly relevant to a firm’s strategy:Competitors (existing or potential)Including those considering entry into an entirely new industryCustomers (or buyers)Suppliers Including those considering forward integration2-*Porter’s Five-Forces Model of Industry Competition2-*Exhibit 2.4 Porter’s Five-Forces Model of Industry CompetitionSource: Adapted and reprinted with permission of The Free Press, a division of Simon & Schuster Adult Publishing Group, from Competitive Strategy: Techniques for Analyzing Industries and Competitors by Michael E. Porter. Copyright © 1980, 1998 by The Free Press. All rights reserved.How the Internet and Digital Technologies Affect Competitive Forces2-*Using Industry Analysis: A Few CaveatsManagers must not always avoid low profit industries – these can still yield high returns for players who pursue sound strategiesFive forces analysis implicitly assumes a zero-sum game – yet mutually beneficial relationships can still be established with buyers & suppliersFive forces analysis is essentially a static analysis – yet external forces can still change the structure of all industriesSee the value netVertical dimension = suppliers & customersHorizontal dimension = substitutes & complements2-*The Value NetExhibit 2.6 The Value NetSource: reprinted by permission of Harvard Business Review. Exhibit from “The Right Game: Use Game Theory to Shape Strategy,” by A. Brandenburger and B.J. Nalebuff, July-August 1995. Copyright © 1995 by the Harvard Business School Publishing Corporation. All rights reserved.2-*Strategic Groups Within IndustriesTwo unassailable assumptions in industry analysis:No two firms are totally differentNo two firms are exactly the sameStrategic groups – clusters of firms that share similar strategies:Breadth of product & geographic scopePrice/qualityDegree of vertical integrationType of distribution2-*Strategic Groups Within Industries2-*Exhibit 2.7 The World Automobile Industry: Strategic GroupsNote: Members of each strategic group are not exhaustive, only illustrative.Strategic Groups Within IndustriesStrategic groups as an analytical toolHelps identify barriers to mobility that protect a group from attacks by other groupsHelps identify groups whose competitive position may be marginal or tenuousHelps chart the future direction of firms’ strategiesHelps to think through the implications of each industry trend for the strategic group as a whole2-*